Oil producers' cartel Opec has agreed to keep output steady at a meeting in Abu Dhabi, despite pressure on it to raise production to dampen prices.
Oil producers' cartel Opec has agreed to keep output steady at a meeting in Abu Dhabi, despite pressure on it to raise production to dampen prices.
Opec will meet again on 25 January to review its decision, Nigerian oil minister Odein Ajumogobia told Reuters.
Opec will next meet on 1 February to review its decision. It said there was no reason for prices to hit $100 a barrel as there were enough oil stocks.
A barrel of US light sweet crude rose $1.33 to $89.65 while London Brent crude rose $1.37 to $90.90.
A barrel of US light sweet crude rose $1.61 to $89.93 a barrel while London Brent crude rose $1.28 to $90.81.
In recent days, prices fell on talk that output would rise and reports that downplayed Iran's nuclear ambitions.
Prices fell on Tuesday after a report downplayed Iran's nuclear ambitions.
Although Opec has not yet officially confirmed its decision to keep output at current levels, leading officials signalled this would be the case.
Enough oil?
"We've seen nothing yet to justify an increase or a decrease," Saudi oil minister Ali Al-Naimi said prior to the meeting.
September's decision to increase output should mean there is enough oil to meet demand for fuel this winter, Opec said.
"Our position is that demand and supply are balanced and there is no need to increase oil on the market," said Iranian oil minister Gholamhossein Nozari.
"There is no reason for the price to go high because we have enough stocks," said Opec secretary general Abdullah al-Badri after the decision was reached.
"There is no reason whatsoever for prices to go to $100 a barrel."
Comments made prior to the meeting had made clear that a rise in output was unlikely.
"We've seen nothing yet to justify an increase or a decrease," Saudi oil minister Ali Al-Naimi said.
Iranian oil minister Gholamhossein Nozari said: "Our position is that demand and supply are balanced and there is no need to increase oil on the market."
Traders are now looking to the release of US inventory data later on Wednesday for direction.
Traders are now looking to the release of US inventory data later on Wednesday for direction.
Mixed views
Mixed views
Opec members account for 40% of the world's oil supply.
Opec members account for 40% of the world's oil supply and many have blamed speculators, not supply, for volatile prices.
Officials from Qatar, Venezuela, Iran and Libya have previously spoken against the need to pump more oil, while ministers from Indonesia, Nigeria and Kuwait said they were still open to increases.
The cartel's move to hold output steady will support prices, analysts said. "They will be giving another opportunity to speculators to push the market up closer to the $100 level in the short term," said consultant John Hall of John Hall Associates.
Some Opec ministers have argued that there are enough supplies to keep consumers warm in winter. They blame speculators for volatile prices.
Others said the weakness of the dollar, which lowers oil exporters' earnings, has changed Opec's price target.
Recent falls in the oil price had made analysts doubt that Opec would announce any rise in output quotas.
"Because the dollar has weakened so much over the past few months, I think Opec's price aspirations have probably shifted higher," said Helen Henton, head of commodity research at Standard Chartered Bank.
"It is not whether Opec raises production or not - they already have - but it is whether or not they legitimise that overproduction by raising their quotas," wrote Phil Flynn, an energy analyst with Alaron Trading.
"$90 a barrel is the line in the sand and if oil is below $90, like I expect it will be then Opec will not raise their production," Mr Flynn added.
Oil prices lost ground on Tuesday, following a report that downplayed Iran's nuclear ambitions.
Oil prices lost ground on Tuesday, following a report that downplayed Iran's nuclear ambitions.
Tension between the US and Iran has contributed to the rally in oil prices.
Tension between the US and Iran has contributed to the rally in oil prices.
The US report by the National Intelligence Estimate said Iran had halted its nuclear weapons programme in 2003, contradicting the US administration's previous view.
The US report by the National Intelligence Estimate said Iran had halted its nuclear weapons programme in 2003, contradicting the US administration's previous view.
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