Opec meets to raise oil prices

Opec members were today putting the final touches on the their long-delayed plan to slash 1.5 million barrels a day from the cartel’s crude production in an effort to firm up sagging oil prices and protect their main source of export earnings.

Oil ministers from the Organisation of Petroleum Exporting Countries met in an emergency meeting in Cairo to approve the 6% decrease in the group’s official output.

The cuts will take effect on January 1 and last for at least six months, several ministers said.

Opec apparently decided to proceed with the cuts even though rival, independent producers such as Russia and Norway have pledged to make reciprocal cuts that are somewhat smaller than what Opec requested.

Opec, which has already cut 3.5 million barrels a day this year, is weary of reducing output only to see producers outside the group increase their market share as a result.

The issue came to a head this autumn as the weakening world economy, together with the uncertainty caused by the September 11 attacks on the United States, dragged down prices by 30%.

Opec’s benchmark crude price averaged 18.68 dollars a barrel yesterday.

Rilwanu Lukman, Nigeria’s presidential advisor on petroleum and energy, said the anticipated cut would be ‘‘more than enough’’ to lift OPEC’s benchmark price to 22 dollars a barrel the group’s minimum target price.