Opec agrees need to cut output, paper says

SINGAPORE - The Organisation of the Petroleum Exporting Countries (Opec) has agreed informally the need to cut production by at least 1 million barrels per day to stem a price slide, the Financial Times (FT) has reported.

Nearly US$20 has been wiped off the price of crude oil since early August.

Without naming sources, the paper said the majority of the 11-member cartel supported a voluntary reduction, already undertaken by Nigeria and Venezuela, to keep the price of its crudes above US$50-55 ($76-84).

A deal could be ratified at its next meeting in mid-December, the FT said.

It quoted "Opec insiders" saying that Kuwait, Iran and Libya had informally agreed to join Nigeria and Venezuela in cutting back, while the UAE is likely to do so also.

"Opec is going to defend a price floor for its oil of US$50-US$55 a barrel," the FT quoted one Opec official as saying.

The Opec basket of crudes stood at US$55.27 a barrel on Tuesday.

- REUTERS