OPEC agrees need to cut output by 1 mn bpd

Singapore, Oct 5: The Organisation of the Petroleum Exporting Countries (OPEC) has agreed informally the need to cut production by at least 1 million barrels per day (bpd) to keep the price of its crudes above 50-55 dollars, the Financial Times reported today without naming sources.

It said the majority of the 11-member cartel supported a voluntary reduction, already undertaken by Nigeria and Venezuela, in an effort to stem a slide that has wiped nearly 20 dollars off the price of crude oil since early August.

A deal could be ratified at its next meeting in mid-December, the FT said. It quoted ''OPEC insiders'' saying that Kuwait, Iran and Libya had informally agreed to join Nigeria and Venezuela in cutting back, while the UAE is likely to do so also.

''OPEC is going to defend a price floor for its oil of 50-55 dollars a barrel,'' the FT quoted one OPEC official as saying.

The OPEC basket of crudes stood at 55.27 dollars a barrel on Tuesday.

Reuters