Oil output levels left unchanged

Oil prices rose to near the 90 US dollars a barrel mark today after Opec decided not to increase output levels.

Prices peaked at 100 US dollars a barrel last month, but had been falling on the expectation that production would be lifted by Opec.

The 13-nation organisation decided against such a move, although it pledged to meet again on February 1. The prospect of a further review of the world economy and other factors indicated that Opec was prepared to increase quotas should prices go much higher.

Today’s decision will maintain pressure on UK fuel prices, which last week averaged 102.8p a litre, with diesel at 107.6p.

A statement at Opec’s oil ministers’ meeting in Abu Dhabi said the group would leave output unchanged “for the time being” because the world was “well supplied” and crude reserves were at comfortable levels.

“We have enough stocks in the market,” Opec Secretary-General Abdalla Salem el-Badri said. “There is no reason for prices to go (to) 100 US dollars a barrel.”

Today’s statement expressed concern about market volatility driven by speculation – and suggested it was ready to step in if needed by taking “every measure deemed necessary to keep market stability through the maintenance of supply and demand in balance”.