The price of oil was up on Monday after the Organization of Oil Producing Countries ended their meeting in Vienna on Monday with a refusal to bow to pressure for another output increase.
At 1646 GMT Benchmark Brent crude for December delivery was selling for 32.42 dollars a barrel, up from $32.02 at the close Friday.
"The market didn't really react to the OPEC meeting, everything that has been said was pretty much expected," explained Tony Machacek, an analyst for Prudential Bache.
"The market is more worried about the bad winter forecast in the United States for the next two or three weeks. Even if they had decided to raise production, it would have been too late because of the winter."
OPEC ministers also announced they will meet again on January 17 to discuss cutting production.
The exclusive club of oil-producing nations appears to be increasingly concerned that after four output hikes already this year the market could be swamped with oil by the end of the winter, leading to a collapse in prices.
But OPEC kingpin Saudi Arabia said on Monday that another production increase could not be ruled out.
"I want to reaffirm there is no elimination, no ruling out of further increments," Saudi Arabian Oil Minister Ali Naimi told journalists in Vienna.
"We have continually said that when it is determined that there is a shortage of supply, OPEC, certainly Saudi Arabia, will rise to the occasion to make up the shortage."—AFP.
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)