Sept. 10 (Bloomberg) -- Crude oil jumped in New York as OPEC President Chakib Khelil called on members to stop producing more than the group's set quota after prices fell to almost $100 a barrel.

The Organization of Petroleum Exporting Countries is producing about 520,000 barrels a day more than their 28.8 million barrels limit, Khelil said. Oil has fallen 30 percent from a record $147.27 a barrel on July 11 as high prices and slowing global economic growth reduced demand for fuels.

``It's definitely a defensive measure to keep prices above $100,'' said Jonathan Kornafel, a director for Asia at Hudson Capital Energy. ``They don't want to see us go back to $140 or $150 but they want us over $100. It's a bit of a shock to the market and that's why we're up.''

Crude oil for October delivery climbed as much as $1.41, or 1.4 percent, to $104.67 a barrel on the New York Mercantile Exchange and traded at $104.62 at 11:45 a.m. Singapore time. The contract had fallen as much as $1.20, or 1.2 percent, to $102.06 a barrel prior to the OPEC announcement.

Crude in New York yesterday reached its lowest level since April 2 while Brent oil traded in London fell as low as $99 a barrel. Demand for fuels in the U.S., the world's largest oil consumer, has declined this year because of the higher prices. Traders have also become more concerned that a global economic slowdown will reduce demand for commodities including fuels.

``The current price is due to slower demand not oversupply,'' said Tetsu Emori, a fund manager with Astmax Ltd. in Tokyo. ``The oversupply is a result and not a reason for lower prices. This is an adjustment of supply and demand only. It will not make the market tight as a result.''

OPEC Sentiment

Brent crude oil for October settlement rose as much as $1.40, or 1.4 percent, to $101.74 a barrel. It was at $101.73 a barrel at 11:46 a.m. Singapore time. The contract earlier fell as low as $98.89 a barrel.

OPEC noted that a declining global economy and resultant falloff in oil demand along with more crude supply and the gains in the U.S. dollar had lowered prices. This means ``a shift in market sentiment causing downside risks,'' according to their statement after the meeting.

``Since the market is oversupplied, the conference agreed to abide by September 2007 production allocation (adjusted to include new members Angola and Ecuador and excluding Indonesia and Iraq) totaling 28.8 million barrels a day,'' OPEC said. ``Levels with which members committed to strictly comply.''

OPEC's quota for 12 members including Indonesia had been 29.673 million barrels a day. Indonesia's target had been 865,000 barrels a day, according to Bloomberg data.

OPEC members have increased production this year as Saudi Arabia, the world's largest producer, sold more barrels to balance shortfalls elsewhere and slake the developing world's growing thirst for crude. That's taken output above the group's agreed targets.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.

Last Updated: September 9, 2008 23:50 EDT