OIL OPEC members opt to begin production cutbacks in April

OPEC wants to keep oil prices up even if demand falls.
ALGIERS, Algeria (AP) -- In a surprise move, OPEC will cut excess production of crude at once and lower output quotas by 1 million barrels a day effective April 1, several oil ministers said today.
The Organization of Petroleum Exporting Countries expects the combined cuts to curb its production by about 10 percent, or 2.5 million barrels a day.
OPEC members agreed to the two-stage output reduction in an attempt to keep oil prices stable when warmer weather is expected to erode demand in major importing countries.
"We are agreed that we will cut 1 million barrels from April 1," said Qatari oil minister Abdullah bin Hamad al-Ateiyah.
The April cut in OPEC's official output target of 24.5 million barrels a day is unconditional, said Obaid al-Nasseri, oil minister for the United Arab Emirates.
OPEC's urging its members to better comply with agreed quotas was expected, but its decision to make an additional cut in its formal output came as a surprise.
Prices rise
Oil prices, which were higher before the disclosure, extended their advance afterwards.
North Sea Brent crude for March delivery was up 59 cents at $29.70 in London, while March contracts for light sweet U.S. crude were up 72 cents at $33.55 in trading on the New York Mercantile Exchange.
When OPEC last met in December, several oil ministers predicted making cuts in their output target at this meeting to prevent oil prices from falling because of warmer spring weather in the Northern Hemisphere and a reduced demand for fuel.
Since then, however, a recovering U.S. economy and vigorous growth in China have boosted demand more than many had anticipated, and this revival has weakened OPEC's case for lowering its official target of 24.5 million barrels a day.
OPEC and industry analysts still expect that demand will drop during the April-June quarter.