Oil prices steady ahead of OPEC statement

Oil prices held steady today as OPEC producers stood poised to call an emergency meeting in early August to discuss production…

Oil prices held steady today as OPEC producers stood poised to call an emergency meeting in early August to discuss production cuts of up to 1.5 million barrels a day.

Crude markets were also waiting for weekly fuel stocks data in the United States that are forecast to show declines in US crude and gasoline inventories.

London Brent blend gained eight cents to $25 a barrel, and US light was off two cents at $26.10.

Traders are awaiting confirmation of an OPEC emergency meeting in early August to cement an agreement to cut production for the third time this year.

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OPEC secretary-general Mr Ali Rodriguez said yesterday ministers were agreed on the need to reduce supply to keep prices near the group's target of $25 a barrel for a basket of its crudes.

Saudi Arabia, the world's biggest exporter and OPEC's most influential member, said at the weekend the cut would likely be between one million and 1.5 million barrels per day - effective from September 1st.

Recent comments from officials in Kuwait, Qatar and Nigeria have backed the Saudi range. But Iran, OPEC's second-biggest producer and normally a price hawk, was more cautious, saying there was no need to panic over recent weak prices.