OPEC today lifted oil supply quotas by one million barrels a day, four percent, in a renewed bid to force down stubbornly high world crude prices.
The pact is designed to underscore the Organization of the Petroleum Exporting Countries' intent to exert downward pressure on prices that last month topped $49 a barrel for US crude, a record.
Official output allocations for 10 member countries go up to 27 million barrels a day from November 1st. But the new deal is expected to make little difference to actual supply flows.
OPEC is already pumping some 28 million barrels daily and leading producer Saudi Arabia has made a commitment to customers to keep deliveries high.
"This is a signal to the market not a change in total output. It will have a psychological effect on prices," said Iranian Oil Minister Mr Bijan Zanganeh.
"Practically speaking quotas are all but suspended at the moment so where they are set is not important," said Mr Alirio Parra, a former OPEC president.
OPEC worries that inflated energy costs will hamper world economic growth and dent the fastest growing global fuel demand in a generation, fired by China's economic boom.
Oil prices have remained high despite OPEC ramping up supplies this summer to a 25-year high. US crude today traded off four cents at $44.35 a barrel as a hurricane battered U.S. Gulf oil operations.
"OPEC had to appear responsible," said Mr Gary Ross, chief executive of New York's PIRA Energy consultancy.
"It is clear the Saudis intend to keep their foot on the pedal until they achieve their objective."