OPEC announces oil production cut

| 1/2/2002

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 barrel Thursday.