TEHRAN Oil prices rose on Thursday on growing signs that the opec cartel may be preparing for its fourth production cut this year.

Buyers were also encouraged by news that the world's biggest oil exporter, Saudi Arabia, has reduced its crude allocations for key European customers in November.

"The market has been waiting for action rather than words from OPEC," said a broker on London's international petroleum exchange.

Expectations of a fourth OPEC oil supply cut this year were kept alive by Venezuelan President Hugo Chavez, who said on Wednesday that he was trying to organise a meeting of OPEC and producers outside the group in Lisbon to address falling prices.

Chavez, who is due to visit Lisbon on October 18-20 as part of a tour of several European countries, said he was trying to set a date for the meeting.

Saudi Arabia appeared to remove one major hindrance to further OPEC quota cuts by signalling it will tighten compliance to existing curbs in November, when sales to key European customers will be "significantly" below October, traders said.