OPEC confirmed Dec. 28 it
would slash 1.5 million barrels per day from its daily crude production
in an effort to prop up oil prices that have plummeted since the
Sept. 11 terrorist attacks. The decision to reduce production follows
the smaller than expected reciprocal cuts promised by independent
producers such as Russia and Norway.
Oil ministers from the Organization
of Petroleum Exporting Countries agreed in an emergency meeting
Friday in Egypt to cut their official output by 6 percent starting
Jan. 1. The cuts are expected to last for at least six months.
OPEC is hopeful that the
production cut will stabilize prices in the $22 to $25 perbarrel
range. The cartel's benchmark crude price averaged $18.68 a