OPEC, producer of a third of the world's oil, agreed to cut output by 1 million barrels a day as of April 1 to support prices during a seasonal slowdown in demand, Iran's oil minister said.

　　OPEC has targeted output of 24.5 million barrels a day, and ministers are urging some 1.5 million more than that in an attempt to lower prices. Officials from the Organization of Petroleum Exporting Countries, gathering in Algiers, expressed concern of pumping too much crude in the second quarter.

　　"It's pumping a lot though, so some needs to be reigned in," said Kevin Norrish, an analyst at Barclays Capital in London.

　　Oil prices have been above OPEC's target since November as members seek to compensate for a weaker US dollar, leading to record industry earnings.

　　BP Plc, Europe's largest oil company, yesterday reported a 2003 profit of US$9.5 billion, following earnings of US$21.5 billion at Exxon Mobil Corp and US$13 billion at Royal Dutch/Shell Group.

　　"It's all up to OPEC to control prices," BP Chief Executive Officer Lord Browne told reporters in London. And "OPEC has shown remarkable tenacity and determination in restraining production to manage the price within the band" of US$22 to US$28 a barrel that members desire.

　　Libya's OPEC delegate, Abdulhasid Mahmoud Zlitni, said on Monday ideal oil prices are between US$28 and US$35 a barrel and urged members to raise their goals because of weakness in the US dollar, which is hurting their ability to import goods from Europe and Asia.

　　Brent crude oil gained 34 cents to US$29.45 a barrel on London's International Petroleum Exchange yesterday afternoon. OPEC maintained its quota when members last met on December 4 in Vienna. The group said then that a reduction was likely in February.

　　The first OPEC meeting of 2004 comes amid forecasts that supply in the 80 million-barrel-a-day world market will exceed demand next quarter by 2.5 million barrels a day or more, partly because of rising output in Russia and other non-member countries.

　　While OPEC's oil-price index has been above US$28 since December 2, the price has dropped 9.6 percent to US$28.09 a barrel as of Monday, from a 10-month record high on January 13, as concern faded that heating fuel would run short this winter.

　　The 10 OPEC members that agree to output quotas, all except Iraq, pledged in September to produce 24.5 million barrels a day.

　　They've surpassed that limit since it took effect on November 1, according to Bloomberg estimates, because rising prices give them no incentive to cut back.

　　OPEC ministers are next scheduled to meet to review output policy on March 31 in Vienna, where the group has its headquarters.