The price of light, sweet crude for October delivery rose $1.36 to $104.62 a barrel early Wednesday in electronic trading on the New York Mercantile Exchange as OPEC ministers agreed to trim overall output in an effort to boost falling prices.
Prior to OPEC's meeting, oil prices fell Tuesday by $3.08 to settle at $103.26 on the Nymex, the lowest settlement price in five months.
OPEC President Chakib Khelil called on members to trim overall output by more than 500,000 barrels a day after prices fell to almost $100 a barrel, according to media reports.
In a statement, OPEC said a declining global economy and the resultant falloff in oil demand along with more crude supply and the stronger U.S. dollar had lowered prices, according to
. This means ``a shift in market sentiment causing downside risks,'' OPEC said in a statement after the meeting.
OPEC's decision to trim output comes as something of a surprise as most experts expected the oil ministers to maintain oil quotas.
This article was written by a staff member of TheStreet.com.