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Oil prices eased but held above US$76 yesterday, as expectations Opec will maintain supply curbs countered weak US jobs data that raised concerns of a recession in the world's top consumer.
US light crude fell US25c to US$76.45 a barrel after climbing US40c on Friday. London Brent crude shed US28c to US$74.79 a barrel.
Payrolls in the United States shrank unexpectedly for the first time in four years last month, data showed on Friday, prompting concerns that credit market turmoil may bring a recession.
Economic troubles that some analysts fear could undermine future oil demand have kept a lid on an oil price rally to near the record high of US$78.77 a barrel struck on August 1.
"Near-record spot prices, steep inventory draws and economic uncertainty would all be good reasons for Opec to reverse its October 2006 production cuts at its meeting on September 11," said Lehman Brothers. "But few observers, us included, believe that it will do so."
Ahead of its meeting in Vienna on Tuesday, most oil ministers in Opec, which supplies more than a third of the world's oil, stuck to the line that current output was sufficient to meet demand.
But Saudi Oil Minister Ali Al-Naimi has declined comment since arriving in Vienna. He has not responded to a report by Washington consultancy PFC Energy suggesting Saudi Arabia favours an output boost of up to one million bpd.
Saudi Arabia, the world's top oil exporter, told its customers in Asia it would keep its crude oil supplies steady for October from September levels, industry sources said. Saudi Arabia is key to any Opec decision.
- Reuters
