OPEC, which pumps more than 40 percent of the world"s oil, cut output by 2.7 percent in February as producers tried to stem price declines.
OPEC, which pumps more than 40 percent of the world"s oil, cut output by 2.7 percent in February as producers tried to stem price declines, a Bloomberg News survey showed. Production from the 12-member group averaged 27.775 million barrels a day last month, down 770,000 from January, according to the survey of oil companies, producers and analysts. Output in January was revised 20,000 barrels a day lower.
Cuts were led by Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries, which reduced output by 165,000 barrels to an average 7.86 million barrels a day. It was the first time Saudi production dropped below 8 million barrels a day since November 2002.
Members with output quotas, all except Iraq, pumped 25.390 million barrels a day, 545,000 barrels more than their target of 24.845 million. The figure was 790,000 barrels a day below a revised January production level of 26.18 million barrels a day.
OPEC oil ministers agreed Dec. 17 in Oran, Algeria, to reduce supply by 9 percent as crude-oil prices headed for their first annual decline since 2001.
Oil futures for April delivery rose 10 cents to $40.25 a barrel at 11:27 a.m. today on the New York Mercantile Exchange after dropping 10 percent yesterday. Crude has fallen 73 percent since reaching a record $147.27 a barrel on July 11.