LONDON, March 16: World oil prices edged up on Friday as traders weighed up the impact of a decision by the Opec crude producers' cartel to keep its production levels steady.
The price of Brent North Sea crude for May delivery added 69 cents to $61.37 per barrel in electronic deals.
New York's main oil futures contract, light sweet crude for delivery in April, gained 40 cents to $57.95 per barrel in floor trading.
“Opec's agreement to leave production restraints unchanged was widely anticipated, but the impact of the decision is still being debated,” said Deutsche Bank analyst, Adam Siemski.
Crude futures had fallen on Thursday after Opec maintained its daily output target at 25.8 million barrels after a ministerial meeting in Vienna, arguing that global supply levels were healthy.“The market is stable, the market is healthy, we do not need to touch (output) at this time,” Opec secretary-general Abdullah al-Badri told a press conference after the meeting.
The 12-nation cartel -- which had cut production at its two previous meetings in October and December -- decided against an explicit output announcement in its official written statement.
In its monthly report, Opec added that world oil demand would grow by 1.5 per cent in 2007, matching its forecasts in January and February.Opec's only surprise was its announcement to meet in September, skipping an expected June meeting, analysts said. The cartel said its next meeting would be an ordinary session in Vienna on September 11.
The move suggested “they are in no hurry to raise output again,” said Tim Evans, Citigroup analyst.
The Organisation of the Petroleum Exporting Counties supplies more than one third of global crude.
Crude oil prices began the week in negative territory on Monday as traders digested forecasts of warmer weather across the United States, which is the world's biggest energy consumer.
The market was also roiled by fresh turmoil on global equity markets and patchy US energy reserves.—AFP
