Opec yesterday predicted that the global oil market will be more balanced in the second half of this year as demand rises and rival supplies falter, echoing views expressed by ministers at the group’s meeting earlier this month.

Oil prices slid after a meeting between major producing nations on a proposed output freeze fell apart, leaving the world grappling with an excess of unwanted crude.

Oil markets will probably balance by the end of next year, prices rising in the medium term, according to Sultan Al Jaber, new head of Abu Dhabi National Oil.

Oil prices might have bottomed out as production declines in the US and other non-Opec producers accelerate and an increase in Iranian supply has been less than dramatic, said the International Energy Agency.

US stocks have slumped again after an apparent recovery from yesterday's "Black Monday" wipe-out.

Oil traded near the lowest level in more than six years yesterday as an unexpected rise in US crude stockpiles exacerbated a global glut.

A further sharp fall in its shares at one stage yesterday for Providence Resources prompted the owner of the Barryroe oil field to issue a statement to reassure investors that it is still in talks with partners “to farm out” or develop its major asset off the south coast.