Opec is to meet in Vienna on November 18 to discuss a reduction in supply after a significant fall in the price of oil.

Chakib Khelil, the Algerian Energy Minister who is also president of the oil producers' cartel, said that the meeting would discuss measures to rebalance supply and demand — interpreted as a hint that Opec members, which account for 40 per cent of global production, want to cut supply and boost prices.

The price of crude fell by 17 per cent last week and closed at $77.70 a barrel on Friday, the lowest level in more than a year. Oil prices were hit by weaker demand in the United States and elsewhere, as well as investors' fears of a possible recession.

Some Opec nations are said to want to cut production to push the price above $100. Gholamhossin Nozari, the Iranian Oil Minister, said: “At this meeting, our country's request to cut production and the members' crude quotas will be submitted. It seems that if Opec does not take a major decision to confront falling oil prices, investment conditions in the oil industry would be faced with a serious danger.”

Mr Khelil said that future oil demand in China and the Middle East, — which could help to offset falls in the West — was a “great unknown”.

“During its next meeting in Vienna, Opec will study the measures to take to cope, above all, with the oil market over the next six months in light of the worsening of the world financial situation,” Mr Khelil said. “If winter is harsh, there will be fewer problems, but in the second quarter we are going to record a fall in demand.”

At its September meeting, Opec members agreed to comply strictly with its formal output target.

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