The Organization of Petroleum Exporting Countries (OPEC) decided Tuesday to cut its excess production of crude oil immediately and lower output quotas by 1 million barrels a day effective April 1.
Analysts said the move suggests that prices of fuel and other refined products will rise. The combined cuts would reduce actual production by about 10 percent a day.
OPEC made the reduction to try to keep oil prices stable with the coming of warmer weather, which usually wears down the demand for oil in major importing countries.
The oil group, which pumps about a third of the world's oil, said the planned April cut is unconditional.