OPEC Announces Large Production Cut Amid Falling Crude Prices

October 24, 2008 5:04 p.m. EST

Vienna, Austria (AHN) - The Organization of the Petroleum Exporting Countries announced at their emergency meeting Friday they will cut oil production by 1.5 million barrels a day, effective Nov. 1.

The decision will be reviewed when OPEC meets next on Dec. 17 in Oran, Algeria. OPEC members said they would cut production further if the price of crude oil continues its rapid deterioration.

The 1.5 million barrel decrease in daily production breaks down between the 11 OPEC nations as follows: Algeria 71,000, Angola 99,000, Ecuador 27,000, I.R. Iran 199,000, Kuwait 132,000, Libya 89,000, Nigeria 113,000, Qatar 43,000, Saudi Arabia 466,000, U.A.E. 134,000 and Venezuela 129,000.

Venezuela and Iran were pushing for a 2 million barrel cut but did not receive support from the other 9 countries.

Announcement of the cut did little to help the commodity as it fell $3.69 a barrel to settle at $64.15 on the New York Mercantile Exchange.

The price of crude oil is now down 56 percent from the $147 high reached in July.