Vienna, Austria — OPEC members agreed Saturday to cut 4 percent from their targeted oil output, or 1 million barrels a day, in the hope of shoring up crude prices at a time of weakening demand.
The cut, which was at the upper end of most analysts' expectations, is aimed at keeping prices from falling further in the face of a seasonal dip in purchases and an overall decline in global economic growth. It will take effect April 1, the Organization of Petroleum Exporting Countries said.
The cartel's members pump almost 40 percent of the world's oil, and their decision will affect retail prices for gasoline and other refined products in importing countries such as the United States. One analyst predicted gasoline prices could rise sharply, but others said the impact would be less dramatic.
OPEC announced its decision after two days of talks in the Austrian capital.
"The present weaker world economy and the traditional sharp downturn in demand associated with the second quarter both clearly point to the need for a correction in oil supply, and the conference has taken the decision to stabilize the oil market," OPEC announced.
Unlike previous OPEC meetings in recent years, this one unfolded against a backdrop of economic fragility, with stock markets from New York to Tokyo registering steep losses in share values. Consumer confidence has suffered, and fears of a recession are growing.
These economic conditions complicated OPEC's efforts to arrive at a suitable cut in production.
"We have to follow continuously this situation," OPEC Secretary General Ali Rodriguez told a news conference after the meeting. "The slowdown in the economy was entirely present in our analysis."
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