Oil producers' cartel Opec has agreed to keep output steady at a meeting in Abu Dhabi, despite pressure on it to raise production to dampen prices.
Oil producers' cartel Opec has agreed to keep output steady at a meeting in Abu Dhabi, despite pressure on it to raise production to dampen prices.
Opec will meet again on 25 January to review its decision, Nigerian oil minister Odein Ajumogobia told Reuters.
Opec will meet again on 25 January to review its decision, Nigerian oil minister Odein Ajumogobia told Reuters.
A barrel of US light sweet crude rose 50 cents to $88.82 while London Brent crude rose 49 cents to $90.02.
A barrel of US light sweet crude rose $1.33 to $89.65 while London Brent crude rose $1.37 to $90.90.
In recent days, prices fell on talk that output would rise and reports that downplayed Iran's nuclear ambitions.
In recent days, prices fell on talk that output would rise and reports that downplayed Iran's nuclear ambitions.
Although Opec has not yet officially confirmed its decision to keep output at current levels, leading officials signalled this would be the case.
Although Opec has not yet officially confirmed its decision to keep output at current levels, leading officials signalled this would be the case.
"We've seen nothing yet to justify an increase or a decrease," Saudi oil minister Ali Al-Naimi said prior to the meeting.
"We've seen nothing yet to justify an increase or a decrease," Saudi oil minister Ali Al-Naimi said prior to the meeting.
"Our position is that demand and supply are balanced and there is no need to increase oil on the market," said Iranian oil minister Gholamhossein Nozari.
"Our position is that demand and supply are balanced and there is no need to increase oil on the market," said Iranian oil minister Gholamhossein Nozari.
Traders are now looking to the release of US inventory data later on Wednesday for direction.
Traders are now looking to the release of US inventory data later on Wednesday for direction.
Mixed views
Mixed views
Opec members account for 40% of the world's oil supply.
Opec members account for 40% of the world's oil supply.
Officials from Qatar, Venezuela, Iran and Libya have previously spoken against the need to pump more oil, while ministers from Indonesia, Nigeria and Kuwait said they were still open to increases.
Officials from Qatar, Venezuela, Iran and Libya have previously spoken against the need to pump more oil, while ministers from Indonesia, Nigeria and Kuwait said they were still open to increases.
Some Opec ministers have argued that there are enough supplies to keep consumers warm in winter. They blame speculators for volatile prices.
Some Opec ministers have argued that there are enough supplies to keep consumers warm in winter. They blame speculators for volatile prices.
Recent falls in the oil price had made analysts doubt that Opec would announce any rise in output quotas.
Recent falls in the oil price had made analysts doubt that Opec would announce any rise in output quotas.
"It is not whether Opec raises production or not - they already have - but it is whether or not they legitimise that overproduction by raising their quotas," wrote Phil Flynn, an energy analyst with Alaron Trading.
"It is not whether Opec raises production or not - they already have - but it is whether or not they legitimise that overproduction by raising their quotas," wrote Phil Flynn, an energy analyst with Alaron Trading.
"$90 a barrel is the line in the sand and if oil is below $90, like I expect it will be then Opec will not raise their production," Mr Flynn added.
"$90 a barrel is the line in the sand and if oil is below $90, like I expect it will be then Opec will not raise their production," Mr Flynn added.
Oil prices lost ground on Tuesday, following a report that downplayed Iran's nuclear ambitions.
Oil prices lost ground on Tuesday, following a report that downplayed Iran's nuclear ambitions.
Tension between the US and Iran has contributed to the rally in oil prices.
Tension between the US and Iran has contributed to the rally in oil prices.
The US report by the National Intelligence Estimate said Iran had halted its nuclear weapons programme in 2003, contradicting the US administration's previous view.
The US report by the National Intelligence Estimate said Iran had halted its nuclear weapons programme in 2003, contradicting the US administration's previous view.
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