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| Opec agrees oil production curb | |
| (40 minutes later) | |
| Opec has told its members to strictly limit their production to agreed quotas as Brent crude dipped below $100 a barrel for the first time since April. | Opec has told its members to strictly limit their production to agreed quotas as Brent crude dipped below $100 a barrel for the first time since April. |
| After talks in Vienna, Opec president Chakib Khelil said the measures to curb over-production amounted to a cut of 520,000 barrels a day within 40 days. | |
| North Sea Brent fell $4.54 to $99.04 on Tuesday before rising to $100.34, while US Brent fell $3.08 to end on $103.26. | North Sea Brent fell $4.54 to $99.04 on Tuesday before rising to $100.34, while US Brent fell $3.08 to end on $103.26. |
| Prices have sunk from a record of more than $147 a barrel seen in July. | Prices have sunk from a record of more than $147 a barrel seen in July. |
| The price has since fallen by nearly 30% as a global economic slowdown has reduced demand for oil. | |
| Supply has also been increased in recent months by some Opec members - principally Saudi Arabia. | Supply has also been increased in recent months by some Opec members - principally Saudi Arabia. |
| Meanwhile, Indonesia has said suspended its membership of Opec. | |
| "The conference regretfully accepted the wish of Indonesia to suspend its full membership in the organisation and recorded its hope the country would be in a position to rejoin the organisation in the not too distant future," Opec said in a statement. | |
| Compromise | |
| After the late-night talks in Vienna, the group announced it had decided to "strictly" comply to the production ceilings agreed in September last year, which amount to 28.8m barrels a day excluding Indonesia and Iraq. | |
| It linked the falling price of oil to falling economic growth, a stronger US dollar, easing geo-political tensions and greater supply. | |
| "All the foregoing indicates a shift in market sentiment causing downside risks to the global oil market outlook," a statement said. | |
| The effect of the measures, according to Algerian Oil Minister Chakib Khelil, who chaired the meeting, will be a cut of about 520,000 barrels a day. | |
| "Actions [to curb output] will be taken by members as soon as they can, that means in the next 40 days," he said. | |
| Opec members will re-assess the situation when the meet again at the end of the year, he added. | |
| The BBC's Bethany Bell in the Austrian capital says the move is a compromise meant to avoid new turmoil in the oil markets, but it also reflects Opec's attempts to stop the recent falls in global prices. |