OPEC to slash oil production

The world’s major oil producing nations agreed today to cut production by 4% from next month despite surging prices, several oil ministers said.

The Organisation of Petroleum Exporting Countries, which pumps about a third of the world’s oil, will reduce its output ceiling by one million barrels per day.

A recent surge 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.

Kuwaiti Oil Minister Ahmad Fahad Al-Ahmad Al-Sabah, who had suggested delaying a cut, was among those who confirmed the group’s decision.

Ministers from Algeria, Nigeria, Libya and Qatar also confirmed the agreement reached in private talks ahead of a formal meeting at OPEC’s headquarters in Vienna.