Oil rose today after Opec decided to keep output levels unchanged after rebuffing calls for more crude to rein in prices now near $90 a barrel.
Opec also agreed to meet again at the end of January to review its decision ahead of a regular March gathering, Nigerian Oil Minister Odein Ajumogobia said.
US crude was up 50 cents to $88.82 a barrel at 9.56am. London Brent crude rose 49 cents to $90.02 a barrel, after ending above US oil for the first time since August 23rd on Monday.
Oil prices have fallen about 10 per cent since peaking at $99.29 on November 21st, and analysts questioned whether Opec holding off on increasing output would lift prices again.
The unfolding implications of the subprime mortgage crisis and its impact on the wider economy are expected to hit demand growth in the United States, the world's largest energy consumer.
Traders said the release of US inventory data today will give further price direction.
A poll of analysts by Reuters ahead of Wednesday's US inventory data showed crude stockpiles probably fell 800,000 barrels in the week to November 30th. Distillate stocks were seen down 300,000 barrels.