Opengl circular lighting

I have looked around and found lots of examples involving cone-sized flashlights and shadow handling, but I haven't seen much that simply explains how to create a circular light around the character as they are moving. (Probably easier than I think).

Here is a picture of what I mean http://puu.sh/O1Vl (which is actually the game I am trying to create right now)

I know the basics of opengl lighting but not enough to create something like this, so any help is greatly appreciated.
Use the stencil buffer
Just draw what would be visible
Ok thanks for the advice, will try it out.
(Pretty new to opengl so will have to do some research about it)

Edit: That worked really well, thanks again :D
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