Opec oil producers have agreed to reduce oil output by one million barrels a day from January 1, while leaving official production quotas unchanged, the cartel confirmed in a statement. "In order to prevent oil prices continuing to deteriorate to an undesirably low level, member countries have agreed to collectively reduce the overproduction by one million bpd for the actual current output," it said.
The Organisation of Petroleum Exporting Countries' current output ceiling is 27 million bpd, but the cartel has been pumping an estimated one million bpd on top of that in face of soaring prices.
However, prices have fallen sharply since a peak in October due in part to Opec's production over its quota and signs that demand has slowed.
"The conference observed that crude oil prices have receded from their record highs as a consequence of the actions taken by the organisation to ensure that the market remains well supplied, the adequacy of supply evidenced by the continued replenishment and build-up of commercial oil stocks," the statement said.
"With stocks back to normal and prices having moderated ahead of the winter season, when inventories are normally withdrawn, the conference decided to maintain the currently agreed ceiling and individual production levels," it added.