OPEC set to cut oil production to boost prices

OPEC is set to cut oil output by up to 1

OPEC is set to cut oil output by up to 1.5 million barrels a day next week in an effort to lift sagging world oil prices, according to Venezuelan President Mr Hugo Chavez.

Speaking at a news conference on the sidelines of the UN General Assembly's annual meeting, Mr Chavez said the oil cartel's 11 member countries, including Venezuela, have reached a "definite" consensus to cut production because of falling oil demand and a global oil oversupply.

The Organisation of Petroleum Exporting Countries' official daily output is currently 23.2 million barrels a day.

OPEC has asked several non-OPEC producers such as Mexico, Russia and Norway to support prices by curbing their production, Mr Chavez said.

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Several of these producers have agreed not to raise their production, he said, without naming any countries.

OPEC ministers meet November 14th to set new production quotas. Several senior OPEC officials recently signaled a growing consensus within the oil cartel to cut production quotas by between 1 million and 1.5 million barrels a day starting December 1st.

Venezuela's president said the world market is currently oversupplied by 1.5 million barrels of crude a day. "Inventories are building," he said.

Mr Chavez defended OPEC's pursuit of a "fair price" of between $22 and $28 a barrel, saying that price range has not been responsible for the current global economic slowdown.