Oil approached $75 a barrel this morning, rising for the third consecutive day, on fears that Opec, the cartel which accounts for 40 per cent of global production, will decide to cut output when it meets on Friday.

Forecasts of a colder than expected winter in the US also supported prices, with consumers likely to need more heating supplies.

Oil prices have fallen sharply since reaching a record high of $147 in July, as concerns about the health of the global economic hit demand growth forecasts.

However, having previously increased supplies following pressure from the West to bring oil prices down, oil producing countries are now keen to reign in outflows to support their own finances.

While the oil cartel’s ministers are widely expected to agree a cut in output at the emergency meeting in Vienna, an intense debate is likely as they try to balance their own price needs against potential risks to wider global economy.

Such risks could see the group cut production in stages, with analysts at Societe Generale expecting a reduction of one million barrels per day, with more reductions to come in later meetings should the need arise.

Brent crude for December delivery rose 15 cents to $72.18, while New York’s main contract, light sweet crude for November delivery, was 26 cents firmer at $74.51 a barrel.

Last week crude prices fell below $70 for the first time in more than a year, dragged down by the prospect of reduced demand in the face of the global economic slowdown.

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