The OPEC has decided not to cut its oil output target. The decision was announced by OPEC Secretary-General Abdallah Salem el-Badri in Vienna yesterday. He said they would not try to shore up prices by reducing production.

The decision to maintain a production target of 30 million barrels a day appeared to reflect acceptance of the Saudi view within OPEC that short-term pain had to be accepted for later gain. Oil prices fell sharply on the news and global price plunged 5 US dollar to a four-year low of 72.76 dollar a barrel. As recently as June it was around USD 115.