Oil prices hover close to $53

Oil prices edged above $53 a barrel today under pressure from warm weather and ample supplies.

Oil prices edged above $53 a barrel today under pressure from warm weather and ample supplies.

Prices last week fell to a 19-month low of $51.56 for US crude, taking losses since the end of last year to around 15 per cent.

By 10.50am, US crude was 18 cents higher at $53.17, while Brent futures gained 39 cents to $53.51. Other commodities, which have also had a rocky start to the year, remained under pressure, with zinc falling around 3 per cent.

The sharp price fall so far this year has alarmed Opec, which has agreed two production cuts.

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A first cut of 1.2 million barrels per day took effect from November 1st, and a second of 500,000 bpd is scheduled from February 1st.

Nigerian Energy Minister Edmund Daukoru said today Opec should wait to see the effects of its February output reduction before deciding on deeper cuts.

But Venezuelan Energy and Mines Minister Rafel Ramirez said oil prices had fallen "too much" and that he would favour an emergency meeting before the producer group's next scheduled conference on March 15th.