OPEC to cut oil production

THE world’s major oil producing nations agreed last night to cut production by 4% despite surging prices – a move analysts said could drive crude oil prices even higher.

The Organisation of Petroleum Exporting Countries (OPEC), which pumps about a third of the world's oil, will reduce its output ceiling by one million barrels a day from today.

A recent jump in oil prices had led some of the group's 11 members to suggest postponing the cut, but OPEC's most influential oil minister, Saudi Arabia's Ali Naimi, prevailed in his effort to press ahead.

The rise in crude prices has seen petrol prices climb to record levels in the United States 25p a litre.

Kuwaiti Oil Minister Ahmad Fahad Al-Ahmad Al-Sabah had earlier put forward a suggestion which would have delayed the cut, but was among those who confirmed the group's decision to trim its target to 23.5 million barrels per day.