SINGAPORE, Feb 23 – Oil traded higher above 40 dollars in Asia on Monday despite an OPEC minister\\\’s forecast of additional output cuts by the cartel.
New York\\\’s main futures contract, light sweet crude for delivery in April, gained 47 cents to 40.50 dollars a barrel in the afternoon on its first day of trade.
The March contract expired at the close of trade on the New York Mercantile Exchange Friday, down 54 cents at 38.94 dollars a barrel.
Brent North Sea crude for April delivery was up 33 cents to 42.22 dollars.
"The market returned to a consolidated market… because of a lack of news," said Jonathan Kornafel, Asia director of Hudson Capital Energy, a trading firm.
He said weak global energy demand, counterbalanced by the Organisation of the Petroleum Exporting Countries\\\’ (OPEC\\\’s) production cuts, were the main factors affecting prices.
Algeria\\\’s minister for energy and mines said Sunday 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.
In a slowing global economy, crude oil prices have dropped from record highs above 147 dollars reached last July.