Oil prices sat tight today as major consuming nations complained that OPEC's deep new output cuts will leave oil supplies too tight for comfort this year for the world economy.
London Brent crude stood just nine cents firmer to $24.88 a barrel as dealers digested OPEC's yesterday's agreement to cut production by just over five per cent. US crude shed five cents to trade at $29.55.
OPEC's deal to trim quotas for 10 members by 1.5 million bpd to 25.2 million bpd saw prices slide on Wednesday, even though some in the cartel said further supply cuts could soon follow.
OPEC Secretary-General Ali Rodriguez said the cartel could consider curtailing output by as much as another million barrels daily at the group's next meeting in March.
"The group wants to keep prices in its preferred $22-28 a barrel range by tinkering regularly with supply. We will raise or cut production as needed to keep prices at the target," said Saudi Oil Minister Ali al-Naimi.
Consuming nations fear OPEC's resolve to keep a tight rein on supply will ensure there is no let-up in higher energy costs that are already threatening to help slow global economic growth.
Reuters