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Tue 20 Jan 2009 11:14 AM

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Kuwait informs buyers of crude supply cut

Gulf state complies with OPEC's plan to curb oil supply to tackle price crisis.

Kuwait has informed all customers of cuts in oil supply in line with OPEC's December decision to reduce supply, state oil company Kuwait Petroleum Corporation (KPC) said in a statement on Tuesday."Kuwait ... has informed all customers of implementing the cut to the contractual volumes which shall start in January, 2009", KPC said.

The Organization of the Petroleum Exporting Countries (OPEC) agreed its deepest-ever single cut at a meeting in December, chopping 2.2 million barrels per day (bpd) from supply.

Kuwait, the world's seventh-largest oil exporter, had a January supply target of 2.22 million bpd under the OPEC agreement. It pumped around 2.45 million bpd in December, according to a Reuters survey.

Earlier this month, trade sources said Kuwait had informed buyers of crude in Asia, Europe and the United States that it would cut output from Jan. 22.

Top oil exporter Saudi Arabia has said it would curb February supplies even further than its OPEC target as it looks to restore balance to a collapsing oil market.

US crude slipped below $34 a barrel on Tuesday, and has lost over $110 from its July peak above $147. (Reuters)

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