OPEC cutting more production

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OPEC cutting more production
« Thread Started on Dec 17, 2008, 11:39pm »

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OPEC cutting more production
Posted: 11:16 AM ET
(CNN) — OPEC countries will cut production by another 2.2 million barrels a day starting January 1, the cartel announced Wednesday, its deepest cut ever.

The cut comes on top of a recent decrease of 2 million barrels a day announced earlier, bringing production down a total of 4.2 million barrels per day from September levels. OPEC hopes the cuts will stabilize prices, which have dropped by more than $100 a barrel since reaching a record high in July.

The cut is somewhat larger than had been expected. Saudi oil minister Ali Al-Naimi had told reporters earlier Wednesday that the cartel would agree to cut production by another 2 million barrels a day.

The nations in the Organization of Petroleum Exporting Countries produce about 40 percent of the world’s oil. The group is meeting in Oran, Algeria, at the end of a year that has seen oil prices fluctuate wildly.