Business digest 12/11/04

OPEC approves cutting oil production next year

CAIRO, Egypt -- OPEC agreed Friday to reduce its daily oil output by 1 million barrels a day starting Jan. 1 -- and reserved the right to cut deeper early next year if crude turns much cheaper than now. But traders said they were taking a wait-and-see attitude toward the pact, and sent oil prices sharply lower. OPEC's move is intended to prevent further revenue losses amid falling prices, without creating the kind of volatility that rocketed prices up to record highs earlier this year.

Sears reassures workers on merger with Kmart

CHICAGO -- Sears, Roebuck and Co. reaffirmed confidence in its prospects following the proposed merger with Kmart Holding Corp., telling employees the move will expand Sears' opportunities and emphasizing that Kmart is not taking over the retailer. The comments, made in weekly comments distributed to employees and disclosed Friday, came after a slew of stock sales by company executives since the Nov. 17 merger announcement.

United lands commercial flight in former Saigon

HO CHI MINH CITY, Vietnam -- United Airlines became the first U.S. carrier to fly to Vietnam since the war ended nearly 30 years ago. Flight 869, carrying 260 passengers, touched down at Tan Son Nhat International Airport in what is now Ho Chi Minh City. The last U.S. commercial carrier to leave Vietnam was a Pan American flight that took off from this city, the former Saigon, just before it fell to the communists in 1975.

Florida citrus crops will be the smallest in years

ORLANDO, Fla. -- Because of hurricane damage, Florida's grapefruit crop this season will be the smallest since the Depression, and its orange crop the worst in 13 years, agriculture officials said in a forecast issued Friday. That raises the prospect of higher prices for orange juice at the supermarket and a shortage of grapefruit juice. This year's oranges and grapefruits are also smaller.

Ford recalls 474,000 sport utility vehicles

DEARBORN, Mich. -- Ford Motor Co. said Friday it is recalling about 474,000 Ford Escape sport utility vehicles worldwide because of an accelerator problem that can cause the engine to race. The automaker said it does not know of any accidents related to the problem.

-- From wire reports