OPEC to cut daily output

CAIRO, Egypt (AP) -- Seeking to keep prices up without having them explode, OPEC agreed Friday to reduce its daily oil output by 1 million barrels a day -- and reserved the right to cut deeper early next year if crude turns much cheaper than it is now.
But traders said they were taking a wait-and-see attitude toward the pact and sent oil prices sharply lower.
The move by the Organization of Petroleum Exporting Countries is intended to prevent further revenue losses amid falling prices, without creating the kind of volatility that rocketed prices up to record highs earlier this year -- forcing producers to scramble to meet demand.
Saudi Oil Minister Ali Naimi said the cut will be implemented starting Jan. 1.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.