Oil prices climbed back above $70 a barrel on Friday thanks to gains on equity markets and news that exporting countries were bringing forward a meeting that is expected to result in a cut in production.

Opec said on Thursday that it will now meet next week to discuss production quotas after a commodity sell off in recent weeks left Nymex West Texas Intermediate 76 per cent off its $147 July peak.

There have been rising calls from the member nations, including Iran, Ecuador and Qatar, to reduce output. And now analysts believe Saudi Arabia, the cartel's biggest producer and usually the most resistant voice against production cuts, is turning in favour of such a move.

"I suggest that with an oil price of $70 a barrel members will push for a cut of at least 1m barrels a day, anything less will be worthless in terms of the current crisis in the demand outlook," said Robert Laughlin at MF Global.

By late morning in London, the Nymex contract was up $1 to $70.86 a barrel. Brent crude remained below $70 a barrel at $68.55 a barrel, up 71 cents.

Gold saw further dislocation from equity market turbulence, dropping below $800 an ounce as investors sold commodities indices, such as S&P GSCI or DJ-AIG, in which gold futures are also present.

By late morning in London, spot bullion was down 2 per cent to $788.30 an ounce.