Vienna - The price for oil produced by the Organization of the Petroleum Exporting Countries (OPEC) rose by 1.21 dollars Monday, ahead of an expected decision on Wednesday to cut output in order to raise oil prices and react to lower demand.

One barrel (159 litres) of OPEC-produced crude stood at 42.53 dollars Monday, the Vienna-based organization announced Tuesday.

OPEC President Chakib Khelil said Monday evening that all member states were in favor of lowering production at their meeting in Oran, Algeria on Wednesday.

In the worst case, the 13-country organization expected oil demand to decrease by up to 500,000 barrels per day in 2009, Khelil said in Oran.

The cartel, which produces over 40 per cent of oil worldwide, has seen its per-barrel basket price fall from an all-time high of 140.73 dollars in July to 36.67 dollars on December 5, pulled down by the financial and economic crises.

Analysts expect OPEC to slash actual production by 1.5 to 2 million barrels per day. Under OPEC's cutback plan, Russia would also be asked to cut its output, according to Vagit Alekperov, the head of Russia's largest private producer LUKoil.

Russia is not an OPEC member but is set to send a delegation to Oran as observers. (dpa)