INSTANT VIEW: OPEC agrees deep output cut

LONDON (Reuters) - The Organization of the Petroleum Exporting Countries agreed on Wednesday to make its deepest output cut ever to counter slumping demand and falling oil prices.

The following are analysts' views on OPEC's decision:

MICHAEL DAVIES, SUCDEN

"If OPEC can enforce the cuts it will have an impact on prices-- but that's a massive question mark at the moment as they've not yet been able to enforce previous cuts."

"It may hold prices up for a bit, but the situation globally continues to deteriorate at an astonishing rate, and as more and more bad macro news comes through, it's starting to look like OPEC are lagging behind."

ADDISON ARMSTRONG, DIRECTOR OF MARKET RESEARCH, TRADITION

ENERGY, STAMFORD, CONNECTICUT

"It seems to me that this won't be enough to get the market to turn around. It seems like a cheap compromise."

"Saudi Arabia floats 2 million barrels per day yesterday and the market doesn't rise, so they add on 10 percent more."

"It seems like despite the fact that the economies of producer nations are clearly in trouble, they don't have the temerity to actually go ahead and do the kind of cut that would be really interesting to traders to turn this around."

"I think the biggest fear they have is compliance. It has been the boogey man for OPEC during its entire history. There's a lack of trust inside the cartel."

MICHAEL LEWIS, HEAD OF COMMODITY RESEARCH, DEUTSCHE BANK

"It's no surprise they're putting through these massive cuts, but I still think prices will continue to go lower into next year."

"Prices may rally slightly, but historically OPEC's had to remove around 5 million barrels from the market in previous slumps, and they're facing bigger problems now than they have done before."

TONY MACHACEK OF BACHE COMMODITIES LIMITED

"The OPEC decision was a little confusing for the market initially. But now it looks like a 2.2 million bpd cut I think that is supportive in the short-term, although that was fairly well priced in."

FRANK SCHALLENBERGER, HEAD OF COMMODITY RESEARCH, LANDESBANK

"OPEC agreed a 4.2 million (bpd) cut from September so it is about 2.2 million from now."

"It is definitely more than expected. The market consensus ahead of the meeting was more or less 1.5-2.0 million. 2.2 million is the biggest cut and we can call it a big step."

"If you look at the market, prices are going up immediately. I really think this is the end of a bear market. $40 was the bottom."

GORDON GRAY ANALYST WITH COLLINS STEWART

"We believe the magnitude of OPEC's latest action reduces the risks of material further price downside significantly. However, given the still-substantial risks to demand and ongoing skepticism on OPEC compliance, it could take some time before prices recover materially above $50-55 per barrel."

(Reporting by Richard Valdmanis, David Sheppard, Ikuko Kao and Jane Merriman, editing by Anthony Barker)