Oil rose on Wednesday after the Organisation of the Petroleum Exporting Countries (Opec) decided to keep output levels unchanged, rebuffing consumer-country calls for more crude to rein in prices now near $90 a barrel.
Opec also agreed to meet again at the end of January to review its decision ahead of a regular March gathering, Nigerian Oil Minister Odein Ajumogobia told Reuters.
United States crude was up 50 cents to $88,82 a barrel at 9.56am GMT. London Brent crude rose 49 cents to $90,02 a barrel after ending above US oil for the first time since August 23 on Monday.
Oil prices have fallen about 10% since peaking at $99,29 on November 21, and analysts questioned whether Opec holding off on increasing output would lift prices again.
”Little fundamentally has changed … the sell-off appears to be driven by financial players underscoring the notion that it’s not physical shortages of Opec crude oil that drove prices to near $100 in the first place,” said Jan Stuart, an economist with UBS Investment Research.
The unfolding implications of the subprime mortgage crisis and its impact on the wider economy are expected to hit demand growth in the US, the world’s largest energy consumer. — Reuters