While Thursday saw international crude oil prices recovering by almost $1 after hitting a 16-month low of around $67 a barrel a day earlier, the government maintained that state-owned oil marketing companies are still making losses on domestic fuel sales and that it would watch the situation for another week before considering any price cuts.

An emergency meeting of Organisation of Petroleum Exporting Countries (Opec) oil ministers is scheduled to be held in Vienna on Friday. ?Opec countries are going to make an announcement about the future course of action and then we will take necessary action,? Union petroleum minister Murli Deora told the Lok Sabha.

In response to a volley of questions from lawmakers, Deora pointed out that the fall in crude prices had to be seen in the context of the erosion in the value of the rupee against the dollar. ?One dollar was about Rs 40 to Rs 41 and now it has gone to Rs 49 or Rs 48.50. This has depreciated the Indian rupee to the tune of 24-25%,? Deora said. He also said the government was waiting for further reduction in global crude prices.

US light crude for December delivery rose 87 cents to $67.62 a barrel by Thursday afternoon trading in Singapore after rising as much as $1.06 earlier. London Brent crude rose 90 cents in early trades to $65.42.

Opec?s emergency meeting is expected to take a decision on the demand by member countries to cut output to shore up prices that have plunged as a global economic slowdown reduced demand in recent months. Opec produces 40% of the world?s oil and its official output quota is 28.8 million barrel per day (bpd). India imports more than 70% of its petroleum product needs.

Global oil prices have tumbled by more than 50% from record highs above $147 a barrel in July 2008 as the economic slowdown has curbed energy demand in the key US and other western markets.

Meanwhile, Iran?s oil minister, Ghola Hosein Nozari, said on arrival in Vienna that Opec should cut production by 2 million bpd. ?Two million will stabilise the market,? Nozari told reporters. Now, all eyes are focused on the Opec meeting, where members have said they would like crude prices to fluctuate between $70 and $90 a barrel.