Oil price climbs ahead of OPEC meeting

Agence France-Presse New York, June 7

World oil prices bubbled higher as nerves mounted ahead of an Organisation of Petroleum Exporting Countries (OPEC) meeting to manage output.

New York's light sweet crude July contract climbed 54 cents to $31.28 a barrel on Friday.

In London, the price of benchmark Brent North Sea crude oil for July delivery rose 36 cents to $27.80 per barrel.

Traders were buying in advance of the OPEC meeting in Qatar on June 11, said Fimat USA analyst Steve Bellino.

"I absolutely do not believe they are going to cut production," Bellino said.

"But there will comments that if the market seems to be getting well supplied, they could very well have an emergency meeting to cut production," he predicted.

A strong market caused by low stocks in the United States ahead of the gasoline-intensive summer holiday season reduced the likelihood of an OPEC production cut, analysts said.

But speculation about a cut had been re-awakened by a Madrid meeting between Saudi oil minister Ali al-Nuaimi, Venezuelan energy minister Rafael Ramirez and their Mexican colleague Ernesto Martens.

"Judging by the way the market has recovered so well... maybe it (the meeting) has raised some speculation about a production cut on June 11," said Prudential Bache analyst, Tony Machacek in London.

Commerzbank analyst Jon Rigby in London said OPEC members Saudi Arabia and Venezuela may be looking for a commitment by non-member Mexico to support prices if needed in the future.