VIENNA, 13 December 2002 — OPEC yesterday agreed to cut excess oil production and to restore its system of quota limits to help support crude prices. Algerian Oil Minister Chakib Khelil said the group had raised its official output target, effective Jan. 1, from 21.7 million barrels a day to 23 million bpd. “We’ve agreed to increase quotas by 1.3 million and the general agreement is to reduce overall production to the level of the new quotas and to keep prices between $22 and $28,” said Khelil. Ministers said the pact of the first quarter 2003, initiated by leading OPEC power Saudi Arabia, means they aim to cut actual production by 1.7 million bpd. OPEC oil ministers admitted that chronic quota-busting has pushed recent output three million barrels a day over the old supply target. “The mathematics make sense,” said analyst Michael Rothman of Merrill Lynch. “They need to deal with the reduced call on their oil after winter.” Brent blend crude rose 33 cents in London afternoon trade to $26.35 a barrel and US light crude jumped 44 cents to $27.84 a barrel. Despite heavy quota cheating, oil prices remain high because of the threat of a US assault on Iraq and a general strike in Venezuela. (R)