Oct. 7 (Bloomberg) -- Qatar is reducing oil production to return to its official target in line with a decision made by OPEC last month, the country's Oil Minister said today.

``We are cutting to restrict ourselves to the official quota, as we agreed in the OPEC meeting,'' Abdullah bin Hamad al-Attiyah told Bloomberg by phone today from Doha. ``It is small amounts.''

Qatar pumped 880,000 barrels a day of oil in September, according to Bloomberg data. Its last known quota was 828,000 barrels a day, requiring the country to cut just over 50,000 barrels a day.

OPEC agreed at a meeting in Vienna on Sept. 9 to a total production limit for 11 members of 28.8 million barrels a day, unchanged from previous targets. OPEC Secretary-General Abdalla El-Badri said this means it will trim ``oversupply'' by about 500,000 barrels a day.

``There is no pressure so far on demand for our oil,'' al- Attiyah said. ``No one today can speculate on what will happen to the oil price or oil demand. The whole world economy is confused.''

Crude oil for November delivery rose as much as 3.7 percent to $91.08 on the New York Mercantile Exchange. It traded at $89.86, $2.05 higher, at 9:56 a.m. London time.

Rate Cut Speculation

Oil rose for the first time in five days as an interest rate cut in Australia triggered speculation that other central banks will ease policy to shore up economic growth. Oil also rebounded on speculation the Organization of Petroleum Exporting Countries, which supplies more than 40 percent of the world's oil, may trim output.

The group, due to review production targets in December, will take ``appropriate measures'' to stabilize international markets, President Chakib Khelil said yesterday.

Arjun Murti, the Goldman Sachs Group Inc. analyst who predicted a crude ``super spike'' in March 2005, said there is a ``downside'' risk to his forecast that oil may rise to Goldman's forecast of $120 oil in the fourth-quarter.

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

Last Updated: October 7, 2008 05:17 EDT