OPEC cuts deep

OPEC made its deepest production cut ever, amid lagging worldwide demand, but prices remain in a slump.

OPEC ministers have agreed to cut a record 2.2 million barrels per day from the oil markets.

The move is aimed at cutting supplies as oil prices continue to fall amid slumping demand.

But there are doubts about how effective the cuts will be:

Oil trader Ray Carbone:

SOUNDBITE: Raymond Carbone, President, Paramount Options, saying (English):

" Even though they are cutting production the real key is the adherence to those production cuts which had some problems in the september cuts people were not abiding by the cuts that they obliged to make"

Oil prices have been in a freefall.. coming down more than $100 from their July peak of $147 dollars a barrel. They now trade close to $40 a barrel.

Supplies remain strong- a US government inventory report released Wednesday showed crude supplies rose last week. And consumers concern about the economy and weak dollar has kept demand in check.

This cut comes on top of existing reductions of 2 million barrels a day at its last 2 meetings--cuts that have had little impact.

Bobbi Rebell, Reuters, New York.