Mr Chakib Khelil, who is also Algeria's energy minister, has told The Associated Press that 'a consensus has formed for a significant reduction of production levels' by the 14-member Organisation of Petroleum Exporting Countries.

Opec members are to announce their decision during a summit in Oran, Algeria, on Dec 17.

Markets are expecting an output reduction but Khelil suggested in an interview on Saturday that it could be deeper than expected.

Mr Khelil said the best way to boost oil rates is to 'surprise' markets.

Oil prices settled at four-year lows on Friday at US$40.81 (S$62.15)per barrel. -- AP