Oil prices traded above $30 (€35) yesterday despite a Saudi signal that OPEC might pump more crude to calm markets worried by Israeli-Palestinian fighting.

Benchmark Brent for December was 28 cents off at $32.30 (€38) a barrel, 7 per cent below a 10-year peak hit on Thursday but inside a $30-plus area seen as a danger zone by Washington. US light sweet crudes were down 79 cents at $34.50 (€41).

Markets remained driven by Middle East turmoil as talks aimed at halting the Israeli-Palestinian violence began.

The market reacted half-heartedly to remarks by Saudi Oil Minister Ali al-Naimi that OPEC might act before a November meeting to stabilise the market.