Organization of petroleum exporting countries /OPEC/ decided today to reduce oil output by 1.5 million barrels per day on the first of next November.

Algerian Oil Minister Chakib Khalil, head of the organization said in a press conference that the organization may take further steps if necessary, before the next meeting to be held in Algeria in next December.

For its part the International Energy Agency said today that the decision of OPEC to cut production 1.5 million barrels a day, is useful in the context of facing the major oil-consuming severe recession.

Eduardo Lopez, senior oil market analyst Division of the Agency’s decision Said that it was not useful because it came while the markets are in the highly charged.

The ministers of the member states agreed earlier in the day in Vienna on the reduction of the level of production in September and would become effective as of November.

Khalil said that the organization wants to draw lessons from the Asian crisis, which led late nineteenth to a retreat price of a barrel of oil to ten dollars by reducing production, calling the Petroleum Exporting Countries to control reduction so as not to be very modest or severe impacts.

Khalil told reporters in Vienna that OPEC’s decision during its emergency session in Vienna to cut production 1.5 million barrels a day needed to avoid striking the world economy are suffering and at the same time to stabilize the price fell below seventy dollars a barrel in New York and London.

Khalil said that if OPEC cut production sharply, it threatens to exacerbating the financial crisis In return, a very modest reduction may not have an impact on prices could collapse, adding that most oil-exporting countries are on the list of victims of the financial crisis.

After the Asian crisis which has reduced the price of a barrel of oil to the borders of ten dollars at the end of the last century called OPEC President to draw lessons from that period and said that the rapid reaction important and we are taking this into account through the OPEC meeting, which was originally scheduled three weeks in 18 November to 24th of this month.

Meanwhile, Khalil said that the financial crisis will affect the supply of oil because the lack of funding freezes many projects and lower prices threatens the viability of many small dealers and even big companies can disappear as they implement major projects.

Regarding the impact of speculation on oil prices Algerian official noted that speculative capital have had a great responsibility in the first level of high prices and causing low closed while trading in the oil market.

The International Energy Agency hoped OPEC’s decision not aggravate the economic crisis

The International Energy Agency hoped would not lead Organization of Petroleum Exporting Countries “OPEC” to reduce oil production to aggravate the situation is very fragile for the world economy.

David Fife senior analyst Agency said in a telephone conversation with AFP .. “still worried about the oil reserves with the approach of winter quarter of robust demand for energy purpose of heating”.

He will not lead to reduced demand exacerbating what can be regarded as very fragile situation of the world economy.

The organization decided Monday to cut oil production by 1.5 million barrels a day in an attempt to contain the decline in oil prices.

America considers OPEC decision to reduce production is contrary to good governance of the mechanism of the market :

In turn, White House considered decision of the Organization of Petroleum Exporting Countries “OPEC” cut oil production by 1.5 million barrels a day that is contrary to good management mechanism of the market.

Tony Fratto White House spokesman said that the value of primary commodities including oil must be determined in open markets and free competition is not through decisions concerning the production of such decisions against the market.