Leaders of the oil producers' cartel Opec are gathering in Algeria where they are under pressure from Saudi Arabia to make a record cut in output.
Saudi Arabia, the world's largest oil producer, predicts the cartel will reduce production by two million barrels a day at the meeting.
Saudi oil minister Ali al-Nuaimi said he expected Opec non-members to cut output by 600,000 barrels per day.
Oil giant Russia, a non-member, will also be represented at the meeting.
A combined cut of 2.6 million barrels per day represents 3% of global output.
Oil prices have slumped from a peak of $147 a barrel in July to about $44 a barrel, as demand has weakened amid the global economic downturn.
Cutback hopes
Expectation is high that oil producers are ready for co-ordinated actions to boost crude prices.
The Iraqi oil minister, Hussain al-Shahristani, said that at least two million barrels a day of oil production needed to be cut.
In terms of prices, he said he was hoping for a target oil price of "somewhere between $80 to $100".
Nigeria's oil minister, Odein Ajumogobia, said he too would support a cut of two million barrels a day.
"I would give such a proposal serious consideration. It's in everyone's interest for supply and demand to be better aligned. They are clearly not at the moment."
The International Energy Agency recently forecast that global demand for oil would fall this year, the first decline since 1983.
However, the fall in the price of oil has been helpful for central banks, especially in the developed countries.
It has eased their concerns about inflation and left them free to tackle their slowing economies by cutting interest rates.
The BBC's economics correspondent Andrew Walker said: "Opec's problem is the result of the worldwide economic downturn."
"Oil use has declined in the developed countries, and is growing more slowly in developing economies," he said.
On Tuesday, US light, sweet crude fell 18 cents to trade at $44.33 a barrel.
Brent crude rose 55 cents to $45.15 a barrel.
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