Oil rose today due to tight supply concerns after OPEC decided to maintain its output ceiling.
Oil prices rose this morning owing to tight supply concerns after OPEC decided to maintain its output ceiling ahead of an expected pick-up in energy demand later in the year.
Brent North Sea crude for delivery in July rose 27 cents to $118.12 a barrel in early London deals. New York's main contract, light sweet crude for July, gained 49 cents to $101.23 a barrel.
Yesterday's meeting in Vienna resulted in OPEC's official output target remaining at 24.84 million barrels a day, where it has stood since January 2009. That announcement sent oil prices rocketing yesterday.
Traders had speculated that the 12-nation Organisation of the Petroleum Exporting Countries (OPEC) would boost production quotas to help cool oil prices and in turn boost economic recovery.
The International Energy Agency said it was 'disappointed' by OPEC's decision and urged producers to pump more anyway to avoid higher oil prices.
The IEA, which represents the interests of industrialised nations, estimates that actual OPEC production stood at 26.15 million barrels of oil in April, giving an overshoot of about 1.3 million. But even such extra output is not seen as sufficient to meet future demand.
OPEC's policy announcement meanwhile exposed deep divisions within the cartel. Kuwait, Saudi Arabia, Qatar and the United Arab Emirates had called for a boost of 1.5 million barrels to the ceiling, but fellow members rejected the idea.
