Output cut: Ali Naimi
Opec cuts output by 1.5m bpd
Saudi Arabian Oil Minister Ali Naimi has announced that Opec will cut its oil output by 1.5 million barrels per day with effect from 1 November, a decision the International Energy Agency has dismissed as "unhelpful" and the White House has branded "anti-market".
He said Opec needed to see the effect of its decision on the oil market before considering any further possible cuts, a Reuters report said.
Naimi, speaking after a meeting which lasted less than two hours, said the cut will help stabilise the oil market.
"The decision was straightforward," Naimi told reporters.
He hoped the decision will help alleviate economic instability but stressed Opec should not be associated with the financial crisis.
"Don't put Opec with the financial crisis," Naimi said, adding that record high oil prices in July this year were the result of speculative trade on futures markets.
He declined to be drawn on commenting on a suitable price for crude.
Naimi also said Opec could meet more frequently to review production.
"We're prepared to meet more often to stabilise the market," he said, adding Opec would do "whatever it takes".
Opec president Chakib Khelil told a press conference the group could take further action if needed before its next scheduled meeting, due to be held in the Algerian city of Oran in December.
"If a further decision has to be made, it will be made and we will not necessarily wait for the Oran meeting," Khelil told a press conference.
The United Arab Emirates Oil Minister Mohammed al-Hamli said that the decision to cut output was unanimous, adding he believed it was a positive move and would help to restore balance to oil markets and stability to the world economy.
Meanwhile, the IEA said the cut was "unhelpful" and comes in the context of main oil consuming countries facing a sharp recession.
"It's not a helpful decision because markets are quite nervous," Eduardo Lopez, senior analyst at the oil market division, told Reuters. "The size of the cut is too big," he added.
The White House also criticised the decision.
"It has always been our view that the value of commodities, including oil, should be determined in open, competitive markets, and not by these kinds of anti-market production decisions," White House spokesman Tony Fratto said.
The US has been concerned about high oil prices which have contributed to a slowing economy.