US President George W. Bush warned OPEC nations today not to use oil production as a tool to increase the price of oil after the organization announced it would cut output by one million barrels a day.
"It's very important for there to be stability in the marketplace," Mr Bush said before a meeting with leaders of the US Congress.
"Obviously if it's an attempt to run the price of oil up we'll make our opinions very clear and known that that will hurt America and hurt the marketplace.
"Our economy is bumping along right now and a runup in energy prices will hurt. Surely the OPEC leaders understand that. I think they do."
Earlier today, Algerian Energy Minister Chakib Khelil, whose country currently holds the Organization of Petroleum Exporting Countries' rotating presidency, said the group had decided to cut output by one million barrels a day.
Mr Khelil said the organization's move intended to "assure market stability, satisfy global demand and avoid price volatility in the interest of producers and consumers."
He added that OPEC had considered "the impact of weak global economic growth and a drop in demand due to high oil stocks."
Oil prices in London fell slightly on the news of the cut, with a barrel of Brent North Sea crude for September delivery trading at 25.25 dollars, five cents down from an intraday high.
AFP