At their annual meeting in Vienna, Opec leaders ignored calls from some producers to cut oil output to bolster prices.

After two days of intensive talks, Opec representatives could only agree to meet again next March to thrash out a decision on the future of the industry.

The price of a barrel of oil is near historic lows

A row between two of the world's largest oil producers scuppered any hope of progress at the meeting.

Saudi Arabia said it opposed any further output cuts because some Opec producers were pumping more oil than agreed under an earlier output agreement signed in June.

Iran and Venezuela stand accused of exceeding their oil quota.

"The key factor behind this was the deteriorating relationship between Venezuela and Saudi Arabia," said Opec expert Mehdi Varzi of Dresdner Kleinwort Benson.

Opec's indecision disappointed oil industry experts.

"Opec was famous for digging itself out of trouble but this time it has dug its own grave," said Bob Finch, head oil trader at Vitol SA in London.

However, the organisation insisted it would make progress on a new deal soon.

"In March we will decide what to do," said Opec Secretary-General Rilwanu Lukman.

Oil price collapse

Oil prices are now at their lowest level for 12 years.

The price of oil is about 40% down on last year and many forecasts say it has further to go.

The BBC business correspondent, Mark Fisher, says Opec countries are in disarray on what to do about oil prices - they seem to agree on little except that they are far too low, with the average price per barrel slumping to $12.33 in the third quarter of this year, compared with $18.03 at the same time last year.