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Oil market awaits OPEC's UAE meet

Uncertainty hung over the outcome of a key OPEC oil output meeting yesterday, despite analysts predicting that the cartel would keep production unchanged because of falling crude prices.

Saudi Arabian Oil Minister Ali al-Nuaimi said on Monday that it was "very premature" to talk about OPEC hiking output at today's meeting in Abu Dhabi.

"We have not looked at the data yet. [Tuesday] and the day after we will have an opportunity to look at all the data. We will assess and decide," he said.

But Libya's oil chief Shukri Ghanem said in Abu Dhabi that he did not believe OPEC would decide to raise output, saying the market was very well supplied.

Among OPEC officials due to arrive in Abu Dhabi yesterday were the oil ministers of Iran and Venezuela, who are expected to resist calls to pump more crude.

Oil prices were firmer in Asian trade yesterday as speculation that OPEC was likely to keep output quotas unchanged gained ground, traders said.

The pressure on OPEC to increase output has eased now that prices have drifted significantly away from record high points close to US$100 a barrel, they said.

"This week the market is focused on one of the sources of uncertainty, OPEC crude supply," French banking giant Societe Generale said. "We believe that OPEC will now leave crude production quotas unchanged unless prices dramatically reverse course" before today's meeting.

Early yesterday, New York's main contract, light sweet crude for January delivery, gained US$0.34 to US$89.65 a barrel. Brent North Sea crude for January delivery added US$0.28 to US$90.08.
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