Opec on Friday slashed production but oil prices continued to fall as concerns about the global economic crisis sent crude to its lowest level in 16 months.

The cartel, which produces 40 per cent of the world’s oil, agreed to cut its output ceiling by 1.5m barrels a day, or about 4.5 per cent, from November. Some members, including Venezuela and Iran, had wanted a cut of as much as 2m b/d.