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SINGAPORE - Oil was steady yesterday as the market awaited Opec's decision on production and the release of US oil inventory data, both due later in the day.
US crude inched up 8c to US$88.40 a barrel. It had settled 99c lower at US$88.32 in the previous session following the release of a US intelligence report saying Iran halted its nuclear weapons programme in 2003.
London Brent crude rose 17c to US$89.70 a barrel after ending above US oil for the first time since August 23 on Monday.
Opec is meeting later this week and it remained unclear whether the group would raise output as some Gulf members are worried high prices may be exacerbating a downturn in global economic growth, even as cartel members agree world oil supplies are sufficient.
"Our own thinking is that Opec may agree to lift production ceilings, but on a temporary or "to-be-reviewed" basis, reflecting the uncertain outlook for oil demand," said David Moore, commodity strategist for Commonwealth Bank of Australia.
Oil prices have fallen about 10 per cent since peaking at US$99.29 on November 21 and officials from Qatar, Venezuela, Iran and Libya have spoken against the need to pump more oil.
Opec's core Gulf producers, led by Saudi Arabia, have avoided comment on whether the group might still opt for an output increase to prevent crude heading back towards US$100 a barrel.
US Energy Secretary Sam Bodman reiterated calls at the meeting for Opec to increase production to bolster supplies.
- Reuters
