RIYADH, Oct 20: The Organisation of Petroleum Exporting Countries (Opec) will slash output by 1.2 million barrels per day (mbd) from Nov 1, UAE Oil Minister Mohammed bin Dhaen al-Hamili announced in Doha on Friday.

Mr Hamili made the announcement after an extraordinary ministerial meeting of Opec. He did not specify the amount of production that each member country would cut.

However, Algeria’s Energy and Mines Minister Chakib Khelil said all 10 Opec members, subject to quotas, would participate in the cut. Only Iraq, struggling to get its oil industry back on its feet.

Sources indicated that Saudi Arabia had agreed to slash 300,000 barrels from its daily output.

Opec, without taking into account the Iraqi output, is currently producing 27.5 million barrels, below its quota of 28 million barrels.

The Opec meeting in Qatar’s capital was seeking to reverse the recent heavy falls in crude prices in an over-supplied market. The cartel seems to have given what the market had been waiting for concrete evidence of Opec’s coordinated action to tighten up supply to stabilise prices.

There was uncertainty over whether Opec would reduce the production from its quota or the output levels.

“Heads of delegation noted with concern ... that crude oil supplies are well in excess of actual demand, as the above-average level of crude stocks in OECD countries demonstrates, and that the oversupply situation and imbalance in supply-demand fundamentals have destabilised the market,” an Opec statement said.

Prices have declined more than 25 per cent since mid-July.

Sources said the ministers attending the Opec meeting also decided to keep a close watch on crude market movements. Some ministers said a further cut of 500,000 bpd could follow when Opec next met in Abuja in December to address high fuel stocks in consumer countries, particularly the US.

Supporting the plan to cut supplies, Saudi Arabia’s Oil Minister Ali Al-Naimi also said that further cuts may be made. “This is not the end of the road,” he said.