Since the start of the year, OPEC has cut its daily production target by 5 million barrels a day to 21.7 mmbpod. In addition to production cuts, speculation of an US attack on Iraq, signs of a recovery of the US economy as well as drop in US inventories of crude oil and refined products has also helped firm oil prices.

One issue certain to brought up in the Vienna meeting is non-OPEC oil production, in particular Russian production. Russia pledged to cut exports by 150,000 bopd in the first quarter and OPEC wants Russia to roll it over into the second quarter. Russian authorities will decide on second quarter quotas next week.

OPEC production cuts have already impacted on international oil producers in the west African nation of Nigeria. Royal Dutch/Shell has said its February output fell to 647,000 bopd, down 24% from last year while TotalFinaElf said its production was down 20%. In the past, Nigeria earned a notorious reputation as a one of OPEC biggest cheaters. However, the country has been to looking to improve its image by complying with quotas this time around.

Despite being mired in recession for ten long years, the recent spike in oil prices should have no real effect on Japan, which is the world's second largest importer of oil. Signs of a global recovery and a lower yen should help Japan cope with higher oil prices, according to the markets.