February 14, 2007	Wednesday	Muharram 25, 1428

LONDON, Feb 13: Global oil prices recovered slightly on Tuesday after plummeting by more than $2 on Monday in response to Saudi Arabian comments that appeared to pour cold water on further Opec output cuts.The International Energy Agency (IEA) meanwhile raised its 2007 world oil demand estimates, saying that consumption had fallen in advanced countries but was rising strongly in emerging economies. It also warned that an already programmed Opec cut might stoke new market tension.

In London, the price of Brent North Sea crude for March delivery gained 34 cents to $56.94 per barrel in electronic deals. The contract expires at the close.

New York’s main oil futures contract, light sweet crude for delivery in March, added 89 cents to $58.70 per barrel in floor trading.

After Monday’s choppy trade, crude futures stabilised on Tuesday to pause for breath ahead of the Brent contract's expiry, according to Sucden analyst Michael Davies.

Saudi Oil Minister Ali al-Nuaimi had indicated in reported comments published on Monday that the Opec cartel might avoid the need to cut output in the immediate future.

Opec, which produces about 40 per cent of the world’s oil, is to hold its next official meeting on March 15.

The IEA report said that for the first time since 1985, oil demand in industrialised countries of the Organisation for Economic Cooperation and Development had shown a significant drop.

This was probably a reaction to high prices, but the decline does not imply a change in the longer-term trend, it said.

However, the IEA said that “in non-OECD (demand) has been robust.”—AFP