El Universal reported that the Organization of the Petroleum Exporting Countries has agreed on a new output limit for the first time in three years, thus ending a six month argument over output quotas with a move that favors Saudi Arabia.

Mr Rafael Ramirez, Venezuelan minister of petroleum and mining, said that the OPEC ministers agreed on a new supply target of 30 million barrels a day. The figure is roughly in line with current production.

The agreement puts a cap on output for the 12 OPEC members for the first time this year and would keep the organization's output near its highest levels in three years, which is an amount enough to increase oil reserves.

When OPEC met in June 2011, it failed to reach an agreement on a higher supply ceiling, leaving Saudi Arabia, which is the world's largest oil exporter, free to supply markets with oil as necessary to compensate for lost Libyan supply.

Iran, Venezuela and Algeria, all of whom are already producing at full capacity, want to keep oil prices above USD 100 a barrel.

Mr Youcef Yousfi said oil minister of Algeria said that "We think the present level is appropriate for producers and consumers."

The three countries are seeking a commitment from Saudi Arabia and other Gulf Arab producers to curb their production as Libya returns to normal output.

(Sourced from www.eluniversal.com)