Oil market: Oil cut boosts price

LONDON - Oil prices rose to their highest level for a month, lifted by Opec's resolve to go ahead with a big production cut despite American pleas for moderation.

The London benchmark, Brent blend crude oil - for delivery next month - rose 43USc to $US26.18 ($58.75) a barrel in light trading.

The oil producers cartel is expected to agree tomorrow to cut crude-oil output to shore up sliding oil prices before waning winter demand.

A cut of at least 1.5 million barrels a day - 5 per cent - is favoured to halt a price slide that has wiped $US10 a barrel off oil prices since December.

"The cut in production is aimed at stabilising prices within the $US22 to $US28 price band for Opec's basket," said Opec secretary-general Ali Rodriguez.

Thirsty Western nations have warned Opec that output cuts and a resulting price rise could spell trouble for the world economy and push the United States into recession.