OPEC said global oil markets are oversupplied, but it will not take action to halt the sharp price fall sparked by the euro zone debt crisis, according to the oil cartel’s secretary general.

The group has agreed to cut output by 4.2 million barrels a day in 2008, but higher prices have encouraged some members to informally boost output and the group is now delivering around half of the agreed cut, said OPEC secretary general Abdullah al-Badri.

OPEC is expected to wait for markets to calm before considering any action.

Crude suffered for more than $11 or about 13% last week on worries the Eurozone’s debt crisis would slow down the global economic recovery.