LONDON (Reuters) - Oil ticked up on Thursday ahead of an emergency OPEC meeting expected to consider supply cuts after a 45 percent drop in prices from record highs hit in July.
The Organization of the Petroleum Exporting Countries, the source of more than a third of the world's oil supplies, meets on Friday in Vienna.
Remarks from ministers so far shows they are inclined to reduce supplies to support prices. Iran suggested a 2 million barrels per day cut, while Saudi Arabia, OPEC's top member and the world's biggest oil producer, has not yet made any comments.
U.S. crude rose $1.09 cents to $67.84 a barrel by 0919 GMT. London Brent crude rose $1.02 to $65.54.
U.S. crude fell on Wednesday to its lowest level in 16 months and settled 7 percent lower due to weaker demand in the United States and as part of broader sell-offs on global markets amid increasing concerns economies were heading into recessions.
Oil prices have plunged about 45 percent since record highs above $147 hit in July.
"We may well be experiencing some short covering in front of tomorrow's meeting in Vienna," said Robert Laughlin with MF Global.
"We should hear more bullish rhetoric from oil ministers as they arrive in Vienna today. We've had some mixed signals so far but still nothing from Saudi who hold the key."
Iranian Oil Minister Gholamhossein Nozari said on Thursday that OPEC would need to cut its oil output by 2 million bpd to stabilize the market.
The group's president Chakib Khelil said OPEC could consider cutting back its oil output in several steps. "I think that is a solution not to be excluded," Khelil told reporters.
He said he also did not rule out the possibility the group could also cut back production with immediate effect.
"I think we will have both solutions," Khelil said.
Khelil said he favors OPEC's reference crude oil basket price at $90 to ensure energy projects go ahead.
The basket price stood at $60.82 on Wednesday.
Some analysts, however, pointed out that the slowing global economy could limit the impact from any oil supply cuts OPEC might agree to support prices.
Total oil product demand in the United States, the world's top oil consumer, fell 8.5 percent in the past four weeks from a year earlier.
"It illustrates the immense size of the demand 'hole' OPEC has to dig itself out of if it is to successfully recalibrate supply with the new demand parameters," MF Global said.
(Additional reporting by Fayen Wong in Perth; editing by James Jukwey)
