OPEC Has Cut Oil Output by 1 mln

Saudi Arabia signalled its support for an OPEC production cut of over one million barrels a day.

Ministers from the Organization of Petroleum Exporting Countries were meeting in Doha, Qatar, to hammer out an agreement on how to allocate the cut, which would begin Nov. 1. The cartel decided to cut production by 1.2 million barrels a day.

The cartel meeting follows a decline of more than 25 per cent in oil prices since a mid-July peak above $78 US a barrel and would be the first cut since December 2004, when oil traded slightly above $40 US a barrel.