OPEC producer Venezuela has joined fellow member Nigeria in making a token cut in supply to stem falling oil prices.
OPEC spokesman Omar Farouk Ibrahim said that "Venezuela has formally informed the OPEC secretariat of its voluntary decision to cut production by 50,000 barrels per day" from its 2.5 million bpd output and an overall OPEC quota of 28 million bpd.
Nigeria said it will cut exports by 120,000 bpd. Analysts question whether Nigeria will make good on its supply cuts. They cite strong demand for the country's light, sweet crude that is rich in gasoline and heating oil.
Despite the news oil fell more than $1. This is because there is plenty of oil around at the moment and investors are waiting for evidence that actual cuts are being instigated.
"There is definitely no agreement -- whether formal or informal -- within OPEC to cut current production," an OPEC official said.
OPEC officials say that there are no plans for an emergency meeting but there are plans to meet face-to-face on December 14.
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