Oil prices steady

Oil prices held steady on Monday, rising above 42 dollars in London, after OPEC member Algeria hinted that the cartel could cut output next month.

Brent North Sea crude for April delivery added 12 cents to 42.01 dollars per barrel.

New York's main futures contract, light sweet crude for delivery in April, eased 18 cents to 39.85 dollars per barrel, after spending much of the day in positive territory.

"Crude prices were higher amid hopes of further supply cuts from OPEC in March," said Sucden Financial analyst Nimit Khamar.

Algeria's minister for energy and mines said that OPEC would probably decide on more cutbacks in output in a bid to prevent further price drops, Algeria's APS news agency reported.

"It is very likely that OPEC will decide on March 15 to reduce production again to stabilise prices that are going down," said Chakib Khelil, referring to the oil cartel's next meeting in Vienna, according to APS.

The minister said OPEC's decision to reduce production by 4.4 million barrels per day in September had prevented oil prices from plummeting even further.

"Oil prices were supported by comments from Khelil," said Khamar.

"Such a move (to cut OPEC output) should help stabilise crude prices further, provided we see close to 100-percent compliance to previous cuts."

In a slowing global economy, crude oil prices have dropped from record highs above 147 dollars reached last July.

Earlier this month, OPEC trimmed its forecasts for global oil demand, forecasting that it would shrink by 0.67 percent in 2009 because of "economic depression" in industrialised countries.

AFP