LONDON (Reuters) - Oil prices rose on Thursday, bolstered by concerns about supplies as investors assessed the impact of OPEC's failure to agree a rise in output targets.
Crude oil prices are at levels governments around the world fear is hurting demand and threatening economic recovery.
Talks by oil ministers of the Organization of the Petroleum Exporting Countries broke down in acrimony on Wednesday but Saudi Arabia pledged unilaterally to ensure plentiful supplies, helping cap gains in oil.
"The non-outcome reinforces the floor under oil prices and leaves the output gap in place, but there is clear evidence of a slowdown in the global economy keeping demand in check," Harry Tchilinguirian, oil analyst at BNP Paribas said.
He noted the breakdown in talks didn't move prices more because the fundamental supply situation remained unchanged, and individual countries would step in to meet demand as necessary.
U.S. crude for July delivery rose 33 cents to $101.07 by 0955 GMT. Brent crude fell 6 cents to $117.79 a barrel.
Lawrence Eagles at JPMorgan said in a report the bank retains its view that oil will reach $130 a barrel by 2011, "but arguably we now not only have to watch Saudi Arabian comments closely, but also those of the International Energy Agency."
The Paris-based IEA, the industrialised nations' energy watchdog, said it stood ready to release oil stocks if Saudi Arabia could not fulfill all of the world's oil needs.
