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OPEC cut boosts oil prices
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March 19, 2001: 6:20 a.m. ET
Crude prices rise after OPEC plans to cut daily output by 1 million barrels
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LONDON (CNN) - Oil prices rose in early London trade on Monday after oil cartel OPEC's decision to cut crude oil production by 1 million barrels a day.
Brent crude for May delivery rose 20 U.S. cents to touch $25.25 on London's International Petroleum Exchange.
The Organisation of Petroleum Exporting Countries announced on Saturday it would reduce daily production to 24.2 million barrels to support prices.
Analysts said the cut, the second this year, wasn't likely to support a sustained rise in prices.
"Our feeling is that with the current surplus of physical crude that prices will continue to erode from here for the next week or two," Lawrence Eagles, oil analyst at GNI Research, wrote in a daily energy report.
Another issue to watch is compliance by OPEC member countries, he said.
"Compliance will improve from February levels, partly because the winter demand will not be there and also because of the fear that prices will slump if OPEC is not seen to be in firm control," Eagles wrote.
OPEC had agreed in January to cut production by 1.5 million barrels a day and indicated at the time that it was likely to cut production by 1 million barrels a day at its next meeting in March. 
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