OPEC agrees surprise oil output cut by 9 lakh barrels

OPEC producers agreed a surprise cut in oil supplies on Wednesday that could raise fuel costs this winter and hamper economic growth. Ministers decided to reduce output for 10 cartel members, excluding Iraq, by 9,00,000 barrels a day to new limits of 24.5 million bpd, said Kuwaiti Oil Minister Sheikh Ahmad al-Fahd al-Sabah.

‘‘OPEC will cut by 9,00,000 bpd from November 1,’’ al-Sabah told news agencies after a closed ministerial session. The decision, still to be ratified at a 1400 GMT meeting, looks set to raise energy bills for oil importing nations during the northern hemisphere winter.

‘‘If oil prices continue to move higher, then interest rates in the G-7 may need to be higher than they would otherwise be which is not good for recovery prospects,’’ said Paul Robson, international economist at Bank One Corp in London.