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| Oil rises on Opec production curb | Oil rises on Opec production curb |
| (about 3 hours later) | |
| Oil prices have risen to more than $103 a barrel, reversing earlier losses, after OPEC agreed to return to its late 2007 production levels. | |
| 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. | 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. |
| Meanwhile, the International Energy Agency (IEA) cut its estimate for global oil demand this year and next. | |
| In New York the main October US light crude future stood at $103.34 a barrel. | |
| 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. |
| On Tuesday Brent crude had dropped beneath $100 a barrel for the first time since April, and crude prices remain close to $100, below which Goldman Sachs said earlier this week could signal a global recession. | On Tuesday Brent crude had dropped beneath $100 a barrel for the first time since April, and crude prices remain close to $100, below which Goldman Sachs said earlier this week could signal a global recession. |
| The fall from the record prices in July has helped the US dollar, which hit an 13-month high against the euro on Tuesday. | The fall from the record prices in July has helped the US dollar, which hit an 13-month high against the euro on Tuesday. |
| On Wednesday the IEA - which had asked Opec to keep its output unchanged - said consumers in industrial nations were changing their lifestyles in response to high prices. | |
| Supply question | Supply question |
| The price has since fallen by nearly 30% as a global economic slowdown has reduced demand for oil. | 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 suspended its membership of Opec. | Meanwhile, Indonesia has suspended its membership of Opec. |
| Actions [to curb output] will be taken by members as soon as they can Chakib Khelil, Algerian oil minister Q&A: volatile oil prices | Actions [to curb output] will be taken by members as soon as they can Chakib Khelil, Algerian oil minister Q&A: volatile oil prices |
| "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. | "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. |
| 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. | 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 slowing economic growth, a stronger US dollar, easing geo-political tensions and greater supply. | It linked the falling price of oil to slowing 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. | "All the foregoing indicates a shift in market sentiment causing downside risks to the global oil market outlook," a statement said. |
| Output curbs | Output curbs |
| The effect of the measures will be a cut of about 520,000 barrels a day, according to Algerian Oil Minister Chakib Khelil, who chaired the meeting. | The effect of the measures will be a cut of about 520,000 barrels a day, according to Algerian Oil Minister Chakib Khelil, who chaired the meeting. |
| "Actions [to curb output] will be taken by members as soon as they can, that means in the next 40 days," he said. | "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. | Opec members will re-assess the situation when the meet again at the end of the year. |
| 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. | 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. |