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OPEC to Cut Production by One Million Barrels a Day

OPEC oil ministers have agreed to prop up sliding oil prices by cutting production by one million barrels a day.

The decision in Cairo Friday comes amid a drop in oil prices from an all-time high of more than $55 in mid-October to more than $40 now.

OPEC countries had been producing above their quota to meet a strong demand that sent prices to record highs. The delegates decided to leave the current quota of 27 million barrels a day unchanged.

OPEC fears prices will slide further if inventories rise too fast.

The ministers say cuts will not take effect immediately, because many producers have already agreed to January supplies.

Some information for this report provided by AP and Reuters.