Oil prices hold

4 March 2008

Oil prices have held steady above the $101 (€66.50) per barrel mark, it has emerged.

Despite oil prices falling by over a dollar, the cost of a barrel is still high, Reuters reports.

As the US economy shows signs of heading towards a recession - a factor that is affecting the oil market - the cost per barrel was $101.16 yesterday.

Organisation of Petroleum Exporting Countries, the oil cartel, is unlikely to alter its output in light of the news, Tim Evans, an analyst at Citibank, remarked.

"The high price level precludes a production cut that might otherwise be needed to limit a projected second (quarter) global supply/demand surplus," he stated.

Demand from non Organisation for Economic Co-operation and Development nations pushed up oil prices last week to a record level of $103.05 a barrel, which was further compounded by the weakening of the US dollar.

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