VIENNA, Austria - Facing a credibility problem and rampant overproduction by members at a time when oil prices are expected to slide, the Organization of the Petroleum Exporting Countries moved yesterday to increase official export quotas while demanding that members rein in their cheating.
OPEC said that it would raise official export quotas to 23 million barrels a day from the current 21.7 million barrels, while asking members to cut production by 7 percent, or 1.7 million barrels a day.
OPEC's credibility has eroded over the past few months because its members have been pumping about 3 million barrels more a day than they agreed to.
After a meeting of oil ministers, OPEC said it would ask members to comply with the new quotas.
But senior OPEC officials acknowledged that they had no way to enforce the planned cuts, as world oil markets are buffeted by factors beyond their control. They include the global economic slowdown, a possible war in Iraq and political unrest in Venezuela that has halted that country's oil deliveries.
Analysts generally praised OPEC's move as a step toward keeping prices and supply stable. Markets responded favorably. In New York, crude oil for January delivery was up 61 cents, or 2.2 percent, at $28.01 a barrel.
"They are being pre-emptive to prevent oversupply when peak winter demand subsides," said Mike Rothman, an energy analyst with Merrill Lynch in New York. "It's a smart thing."
Although the price of oil is relatively robust right now, demand usually drops off in late winter.
If members comply, OPEC's real production and its quotas would be roughly in line, giving world markets a benchmark and ensuring that prices remain near the current world average of $24 a barrel.
Asked if OPEC members would comply, OPEC's president, Rilwanu Lukman of Nigeria, replied, "Inshallah," the Arabic word for "God willing."
Abdulhafid Mahmoud Zlitni, Libya's chief delegate, said OPEC would watch the market and adjust output to keep prices between $22 and $28 a barrel.
Analysts said how long the global economic slowdown lasts would probably be a crucial factor in determining oil production levels.
If its members do stick to production quotas, OPEC will be able to exert considerable short-term control over the global market.
Although it produces only a third of the world's oil, OPEC producers, particularly Saudi Arabia, are the only ones with spare production capacity, which gives them exceptional leverage over prices.
Analysts at the meeting generally agreed that cuts would initially be 500,000 to 1 million barrels a day, far short of the 1.7 million pledged.
Analysts did not expect that war with Iraq would have a significant effect on prices.
"What is important is if the war spreads beyond Iraq's borders," said Vera de Ladoucette, director of Middle East research at Cambridge Energy Research. "If not, Saudi Arabia can compensate any loss of Iraqi supply, and they are happy to do it."