Opec oil ministers meet this morning in Vienna to discuss a cut in oil output, following sharp falls in barrel prices since their record peak of $147 in July.

In London, traders were bracing themselves for a volatile day as markets around the world awaited the outcome of the meeting.

Ministers from the oil producing nations are keen to push prices above $70 a barrel. The price of a barrel of US light crude for December delivery hit a 16-month low of $65.90 yesterday.

In early trading today, US crude was up to $67.53 a barrel, while London Brent crude was down 26 cents at $65.66.

An Opec delegate said this morning that the ministers were discussing two options: cutting one million barrels per day now and then cutting more in December, or slashing production by 1.5 million barrels per day immediately.

Oil has plunged by more than 50 per cent from July's record high as the global financial crisis bit into energy demand in the US and other industrial countries.

Opec ministers said yesterday that they had agreed to cut output but had not decided by how much. Iran suggested that a 2 million barrel per day reduction was necessary to stabilise oil prices, while Qatar said that a 1 million barrel per day reduction was sufficient.

Chakib Khelil, president of Opec, said yesterday that the producer group could consider cutting back its oil output in several steps.