Saudi officials assured world markets that they would ignore the decision and continue to pump as much oil as needed.
The Saudis made their strategy clear in informal talks and briefings with some oil industry analysts and reporters, but as is their custom they would not speak for attribution because they did not want to appear to undermine a collective decision by OPEC that they endorsed publicly.
The confusion surrounding the meeting briefly slowed the decline in prices as oil markets tried to untangle the cartel's byzantine decision. But thanks to the Saudi assurance and lower oil consumption data, oil for October delivery was down 37 cents at $102.89 a barrel on Wednesday afternoon in New York. The price has dropped 30 percent since its July peak of $147.27.
OPEC members are getting anxious as oil approaches $100 a barrel. In its surprise decision after a six-hour meeting that began late Tuesday and stretched well into the night, the Organization of Petroleum Exporting Countries said its members had agreed to pare down their production and comply strictly with targets set up last year but that were largely ignored.
Despite the decision, it is far from clear whether OPEC producers will actually reduce their output. Saudi officials were quick to reassure markets that they would continue to provide customers with as much oil as needed.
OPEC's discordant message is a reflection of the competing policies at play within the group. Some countries are being careful managers of their oil windfall, while others are spending freely with the expectations that prices will remain high.
Moderate and pro-Western states like Saudi Arabia and the United Arab Emirates are aware that high energy costs are hurting demand and might push consumers to seek alternatives to oil. They want to see prices fall below $100 a barrel to ease the political backlash against the cartel.
