Russia is poised to join Opec in a co-ordinated action next week that could lead to global oil production being cut by up to two million barrels a day. The move, designed to put a floor under a slide in crude prices of more than two thirds since July, will be announced to coincide with Opec's meeting in Oran, Algeria, on Wednesday, according to Sergei Shmatko, the Russian Energy Minister.

He said that his country would announce proposals on curbing oil production to accompany Opec's own announcement, which he said would include “very significant” measures to defend prices. Oil traded at $47 a barrel on Wednesday, down from $147 in July.

Russia is not an Opec member but ranks alongside Saudi Arabia, the cartel's most powerful member, as the world's largest oil exporter. Together, Opec and Russia control about half the world's daily production, or more than 40 million barrels. All oil-exporting nations have been concerned at the scale of recent price drops, which have undermined their governments' ability to spend on social and military programmes.

Richard Savage, head of energy research for Mirabaud, the Swiss bank, said that there was a glut of at least one million barrels a day in the global market for crude oil as the spreading global recession undermines demand, particularly in the United States. He said that any effective move by Opec and Russia to force prices back up would require a cut of at least 1.5 million barrels of production.

However, he added that cutting production to defend prices was an inexact science that often failed to work. “It's a very blunt tool and it will take at least four to six weeks to have any impact,” he said, adding that much would hinge on the severity of the reduction in global oil demand next year — an issue that is controversial and poorly understood. The strength of the Chinese economy next year is likely to be a critical factor.

Another question is whether the cuts will be honoured by Opec members — a perennial problem for the cartel, because some choose to overproduce to boost their own revenues. Saudi Arabia is thought to be among those still producing significantly more than its latest Opec production quota of about 8.5 million barrels a day, set when the cartel cut production in October.

The meeting in Algeria is likely to include discussion of the need for greater compliance by member states.

The prospect of closer ties between Opec and Russia has alarmed consumer countries, which have been urging restraint.

Fatih Birol, the chief economist of the International Energy Agency, said that Opec members needed to “consider the fragile state of the world economy” at their meeting next week.

The US Energy Information Administration said this week that it expected global oil demand to slump by 50,000 barrels a day this year and 450,000 barrels a day next year, representing the first year-to-year drop in world oil demand since 1983.

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