Crude oil futures strengthened yesterday as Russia said it was prepared to cut production by 150,000 barrels per day (bpd) - 5 per cent of its exports - in support of attempts by OPEC to shore up prices.
But US inventory figures acted as a damper on the price gains, with a reminder that unused stocks of fuel were stacking up in the world's biggest oil-consuming country.
Late in London, January Brent was 43 cents higher at $19.72 (€22.16) a barrel after reaching a high of $20.25. By early afternoon in New York, WTI was up 35 cents at $20 a barrel after a morning high of $20.78.
Russia took oil producers closer to an agreement on curbing crude output after Russian Prime Minister Mr Mikhail Kasyanov met Russia's oil company bosses to negotiate an agreement on cuts.
OPEC said it wanted to see a cut of 500,000 bpd from rival producers as a condition for reducing its own production by 1.5 million bpd. OPEC officials reacted positively to the Russian news, but attention is now centred on Norway, the second-biggest exporter outside OPEC.
Oslo said it would cut output by 100,000-200,000 bpd, depending on the size of the Russian cut, but oil minister Mr Einar Steensnaes caused consternation yesterday by saying Norway's reduction might not be implemented in time for OPEC's January deadline.
Crude oil imports jumped more than 1.8 million bpd, or 22 per cent, last week, according to data released late on Tuesday by the American Petroleum Institute (API). The API said US crude oil stocks were almost 8 per cent higher than they were last year, with winter heating oil supplies almost 25 per cent higher than those of last year.
