VIENNA, Oct 24: The Organisation of Petroleum Exporting Countries on Friday decided to slash oil output by 1.5 million barrels a day from Nov 1 as it seeks to prevent a sharp, sudden fall in prices. The move triggered a verbal backlash from recession-threatened Britain and the US.

Opec, which produces 40 per cent of world crude, announced the cut to production after a meeting in Vienna in a bid to support crude prices which “have witnessed a dramatic collapse — unprecedented in speed and magnitude”, according to an official statement from the cartel.

Yet after the organisation agreed to reduce its official output quota to 27.3 million barrels per day, the price of US light crude for December delivery traded down $4.20 at $63.64 a barrel while Brent North Sea crude sank close to 61 dollars, the lowest point since March of last year.

The White House denounced what it called Opec’s “anti-market” decision to cut production following the cartel’s emergency meeting.

“It has always been our view that the value of commodities, including oil, should be determined in open, competitive markets, and not by these kinds of anti-market production decisions,” deputy press secretary Tony Fratto said.

“The high oil prices from the past year contributed to the slowdown in demand and the subsequent downturn in the economy, and we would ask that everyone keep that in mind going forward.”

British Prime Minister Gordon Brown was left “disappointed” by the reduction and urged oil producers to show a “responsible attitude” in the current crisis, his spokesman said.

German Economy Minister Michel Glos appealed to oil producing countries’ sense of “responsibility” to avoid pushing prices higher.

The actual cut might be closer to two million barrels if Opec members adhere more strictly to earlier production quotas.

The cut reflected a compromise between members such as Iran and Venezuela, which were looking to yank up to two million barrels a day off the market, and Saudi Arabia and its Gulf allies that traditionally seek to temper calls for major cutbacks.

It also tried to balance Opec members’ concerns over eroding revenue with demands from the US and other major consumers that need affordable crude as they struggle with a worldwide financial crisis.

The 11 nations in the Organisation of Petroleum Exporting Countries are already producing more than their oil quotas by 300,000 barrels a day past the stated daily production target of about 29 million barrels.

So if they stop overproduction, and comply with the 1.5-million cut agreed on Friday, Opec should end up producing about 1.8 million barrels less a day.

—Agencies