INSTANT VIEW: OPEC agrees effective 520,000 bpd output cut

(Reuters) - OPEC unexpectedly agreed on Wednesday to revert to its 2007 production limit of 28.8 million barrels per day, a move that the group's president said would cut production by 520,000 bpd, or about 1.8 percent, from July levels.

Many analysts had expected OPEC to retain existing production targets at its meeting in Vienna, but some ministers and analysts had suggested that they could agree to tighten compliance.

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* MARKET REACTION:

* U.S. crude oil prices climb more than $1 a barrel, reversing early losses

* LME copper rises $42 or 0.6 percent to $6,857 as commodity investors take heart in oil's rally

* Spot gold pares early losses after touching a near 11-month low of $762.55 to stand at $770.50, down 0.8 percent

KEY STORIES:

> TEXT-OPEC communique from Wednesday meeting

> New OPEC ceiling a cut from July output-Khelil

> Oil jumps $1 as OPEC surprises with output cut

KEY POINTS:

* OPEC COMMUNIQUE-OPEC OUTPUT TARGET 28.8 MLN BPD

* OPEC COMMUNIQUE-OPEC TO MEET NEXT DEC 17 IN ORAN, ALGERIA

* OPEC PRES SAYS NEW OPEC TARGET IS 520,000 BPD DECREASE

FROM OUTPUT IN JULY 2008