NEW YORK (AFP) — Oil prices rebounded Thursday as OPEC prepared to cut production to shore up prices that have sagged in the fallout of an escalating global financial crisis.
New York's main contract, light sweet crude for December delivery, closed at 67.84 dollars per barrel, up 1.09 dollars from Wednesday.
Earlier the New York futures contract hit an intraday low of 65.90 dollars -- a level last seen on June 13, 2007.
In London, Brent North Sea crude for December delivery rose 1.40 dollars to settle at 65.92 dollars per barrel.
The market had fallen heavily Wednesday on heightened demand concerns when the US government reported a substantial build in crude oil inventories in the world's biggest energy consumer.
But Thursday prices rebounded as members of the Organization of the Petroleum Exporting Countries talked up output cuts as they arrived in Vienna for an emergency meeting Friday.
OPEC president Chakib Khelil, Algeria's energy minister, said the cartel would decide to cut production but was wary of aggravating the financial turmoil.
"We are going to reduce (output on Friday). By how much? We don't know. This is something we are going to decide tomorrow," Khelil told reporters.
"It's a concern that we could make the financial crisis worse by taking too strong a reduction," said Khelil, adding however that the decision "should not impact the world economy which is already in pretty bad shape."
Iran -- OPEC's second-biggest oil exporter after Saudi Arabia -- and Libya both called for a reduction of two million barrels per day, while Venezuela said there should be a cut of at least one million barrels.
Saudi Oil Minister Ali al-Nuaimi declined to comment on an output cut. Asked by reporters what OPEC would decide at the meeting, Nuaimi replied: "Who said anything about a cut?"
Crude oil prices have more than halved since striking record highs above 147 dollars per barrel in July.
OPEC's Gulf state members, led by Saudi Arabia, are expected to oppose any major production cuts, analysts said.
OPEC produces about 40 percent of the world's oil and its official output quota stands at 28.8 million barrels per day.
"OPEC will probably engineer some sort of cut before they adjourn, if only to assuage the concerns of their most vocal members Iran and Venezuela. Ergo, look for a bounce higher going into the weekend followed by a resumption of selling," said Mike Fitzpatrick at MF Global.
BetOnMarkets analyst David Evans noted the latest US inventory report showed oil demand down by almost 10 percent for the year.
"Analysts are now estimating that OPEC would need to cut its output by more then 1.0 million barrels per day in order to reverse the recent (price) losses.
"We believe that oil might actually touch 60 dollars per barrel before the end of the month," he added.
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