Opec confirms 1.5mbpd cut effective November

Oil ministers of the Organisation of Petroleum Exporting Countries (Opec) have decided to cut output by 1.5 million barrels a day as of next month.

The oil cartel’s move is an attempt to shore up sagging prices. Crude is selling for 50 per cent less than this year’s historic heights because the worldwide economic crisis has put a huge crimp in demand for crude.

Opec’s statement says prices have witnessed a dramatic collapse unprecedented in speed and magnitude.