World oil prices steadied today after climbing sharply on a cold snap in the United States and Europe and growing evidence of lower OPEC exports.
Forecasters at Weather Services Corp predicted above-normal fuel demand in the world's two largest heating oil markets, northeastern United States and northern Europe, for the rest of the week.
Benchmark Brent crude oil slipped two cents to $20.96 per barrel by early afternoon in London, having jumped over a dollar yesterday. US crude futures shed 11 cents to $20.90.
Oil prices are at their highest level since November on the unusually chilly weather, which drove heating oil stocks in the United States down 2.3 per cent last week.
Jittery oil markets also found support from growing evidence that OPEC exporters were implementing cuts agreed at an emergency meeting in Cairo last week.
Qatar and Iran both issued details of lower January sales today after the cartel agreed to slice 1.5 million barrels per day (bpd) from its quotas. They followed similar statements by UAE and Saudi Arabia earlier in the week.
OPEC's deal was accompanied by pledged cuts of almost 500,000 bpd by independent exporters, bringing the total curb to almost two million bpd from the world's 76 million bpd market.
Threatening a price war that could have taken prices as low as $10 per barrel, OPEC managed to exact promises from Russia, Mexico, Norway and others to respond to the need for output restraint while the slowing world economy hits demand.
Oil prices are still about 25 per cent below where they stood ahead of September 11th.