* Oil ticks up around $68 a 16 month low
* Investors eye OPEC's emergency meeting
* Iran minister says 2 million bpd cut needed
(updates throughout, previous PERTH)
By Ikuko Kao
LONDON, Oct 23 (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 Organisation 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 <CLc1> rose $1.09 cents to $67.84 a barrel by
0919 GMT. London Brent crude <LCOc1> 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
stabilise 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 favours 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)
