Shares of oil producers and oilfield services companies were mostly higher Tuesday after the Federal Reserve lowered a key interest rate to a range of zero to 0.25 percent in another attempt to bolster the U.S. economy.

The new target range is the lowest since 1954, when tracking of the federal funds rate began.

The Federal Reserve last lowered the funds rate - the interest rate banks charge each other on overnight loans - by a half-point to 1 percent on Oct. 29.

The ongoing credit crunch and commodity prices that have fallen significantly since summer have forced some oil and natural gas producers to scale back spending on capital projects next year. The major oil companies are considered to be more flexible with spending because of their extraordinary profits in the past few years.

Oil prices fell Tuesday after OPEC powerhouse Saudi Arabia said oil production would be cut by 2 million barrels a day to stem declining crude prices. OPEC, expected to slash production levels Wednesday, has hinted that it may have to "shock" markets to stabilize prices. But oil traders and brokers appear to have expected talk of an even bigger cut.

In trading Tuesday, shares of Exxon Mobil Corp., the world's largest publicly traded oil company, rose $1.95, or 2.4 percent, to $81.90, while Chevron Corp., the second-biggest U.S. oil company, jumped 80 cents to $79.01.

No. 3 ConocoPhillips was up $1.26, or 2.4 percent, to $53.16.

Oilfield services companies were mixed.

Halliburton shares rose 39 cents to $17.65, while larger competitor Schlumberger Ltd. was down $1.39, or 3.3 percent, to $41.42. Baker Hughes was down about 3.5 percent, off $1.09 to $29.99.

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