Iran cuts oil production

TEHRAN, Oct. 31 (UPI) -- Iran will follow recommendations from the OPEC cartel and drop its oil production quota by 199,000 barrels per day beginning in November, officials said Friday.

Iranian Oil Minister Gholam Hossein Nozari said in statements published in the state-run Islamic Republic News Agency that Friday's decision was based on declining world oil prices amid sagging demand.

"Until we are able to meet stability in the oil market and OPEC makes a new decision on the issue, the trend will continue," he said.

After a moderate rally Thursday, oil prices on the New York Mercantile Exchange Friday were down to around $62.50 per barrel. Iran earlier in October had advocated a production cut to bring prices well over $100 per barrel.

Nozari called on all members of the Organization of Petroleum Exporting Countries to follow suit. OPEC last week in Vienna announced it would cut its production quota by 1.5 million barrels per day and hinted at further cuts in December.

"That was an agreement reached among OPEC members to hold another extraordinary meeting before the December meeting in Algeria," Nozari said. "We hope oil market will stabilize."