Libya to reduce oil production by 270,000 barrels a day next year

TUNISIA, Dec. 29 (Chinese media) -- Libya announced on Monday it will cut its daily oil output by 270,000 barrels as of Jan. 1, 2009 in response to an output-cutting decision adopted by the Organization of Petroleum Exporting Countries (OPEC).

The size of Libya's cut is larger than the OPEC demand, Shokri Ghanem, chairman of Libya's National Oil Corporation, was quoted as saying by news reports reaching here from Tripoli.

The OPEC decided at a meeting on Dec. 17 it will cut production by 2.2 million barrels per day starting next month, in order to shore up prices.

It was reported that the Abu Dhabi National Oil Company, the United Arab Emirates main producer, will also cut back its output starting in February next year.

The decision by Libya and the UAE caused the price of oil to rally on Dec. 29, in both New York and London to close above the level of 40 U.S. dollars per barrel.