Nov. 13 (Bloomberg) -- OPEC, which supplies more than 40 percent of the world's oil, may need to wait two months before the impact of last month's production to cut is felt, the International Energy Agency said.

``With the meeting coming in late October, after many producers had already informed customers of November contract volumes, it may be a couple of months before the impact and durability of actual production cuts becomes apparent,'' the IEA said in its monthly report released today. Compliance to cuts is likely to be ``strong,'' it said.

The Organization of Petroleum Exporting Countries decided last month to reduce production quotas by 1.5 million barrels a day after waning demand caused prices to crash from their July record of $147.27 a barrel.

Crude oil for December delivery declined as much as $1.49, or 2.7 percent, to $54.67 a barrel today, the lowest since Jan. 30, 2007. The contract traded at $54.95 at 4:17 p.m. Singapore time on the New York Mercantile Exchange.

Gulf Cooperation Council members of OPEC, including the world's largest oil producer Saudi Arabia, may refrain from announcing a further round of cuts to avoid a price surge, the agency said.

``GCC OPEC members may also be wary of a further cut in target until adherence to the 1 November cuts can be better assessed,'' the report said. ``Reducing supply too steeply may be a concern, if it risks a price surge with adverse consequences for a sick global economy and already-sluggish oil demand growth.''

The group is scheduled to meet in Algeria on Dec. 17, and it may hold a meeting before that to discuss how to stem the decline in prices, Libyan and Iranian officials said yesterday.

To contact the reporter on this story: Ayesha Daya in Dubai adaya1@bloomberg.net

Last Updated: November 13, 2008 04:32 EST