Opec has decided not to make the deep cuts in oil production aired last week ahead of the Vienna meeting, and oil prices fell back a little on Monday in response.

Oil was down $2 Monday to just over $44.

Fearing demand destruction under the conditions of today’s credit-strapped world, the cartel, which accounts for 40 percent of world oil production, decided simply achieve compliance with cuts pledged late last year.

“(Opec delegates were) concerned to note that the world economy is in the midst of the worst global economic recession in decades, with the world economy forecast to contract by 0.2 percent in 2009, considerably lower than the forecast in December 2008, and downside risks dominating, especially in the OECD region,” a statement after the weekend said.

In their decision, members noted that non-OPEC supply was forecast to grow by 400,000 barrels per day in 2009 to 50.7 MM bpd. Opec flows would be down 1.8 MM bpd in 2009.

In a joint statement, Opec heads said they were happy members were 79 percent compliant with December 2008’s cuts in production. They said they also saw the West was at last showing “a reversal in crude oil-stock trends” after a cold winter in North America and Europe.