OPEC set to cut oil output by 1m barrels a day

DUBAI: The ministers of the Organisation of Petroleum Exporting Countries (OPEC), meeting in Doha on Thursday, are expected to announce cut in oil output as supply in the world market outpaces demand.

OPEC sources said the organisation could reduce its output by one million barrels per day, but indicated that it is up to the ministers to take the decision.

Oil prices have plunged by USD 20 during the last few days. OPEC ministers in their Vienna meeting had agreed to maintain official production levels at their current 28 million barrels per day (bpd).

"The meeting aims to strike a balance and stability in the world energy markets, UAE Energy Minister Mohammed bin Dhaen Al Hamili said on arrival in the Qatari capital.

Qatar's second Deputy Prime Minister, Minister of Energy and Industry Abdullah bin Hamad Al-Attiyah said any decision to be taken to reduce oil production by OPEC members, in their one-day emergency meeting, would apply to actual production and not to the production ceiling.

The OPEC ministers are set to review the latest developments and there is a trend to slash oil production as supply exceeds demand in the world oil market.

The OPEC ministers are likely to probe the volatile prices of oil on the world markets.  The meeting coincides with rising concerns over the prospects of the world economy due to the waning demand for oil, leading to retreating prices. The meeting is expected to end tonight.