Opec poised to slash oil output

OPEC is to order production cuts next week in a bid to reverse the recent slump in oil prices, it has emerged.

Speaking after addressing the opening session of the annual ministerial meeting in the United Nations General Assembly, Venezuela's President Hugo Chavez said: 'In four days, Opec will cut its output so oil prices can return to a just level.'

Oil ministers representing the group's 11 members, which produce 40% of the world's crude, are due to meet at the organisation's Vienna headquarters on Wednesday.

Prices have slumped to two-year lows since the 11 Sept terrorist attacks on New York and Washington, and Opec sources in Vienna said the cartel was likely to cut output by up to 1.5m barrels per day.