Oil holds above $60 in Asia, ahead of Opec meet

I / Singapore May 25, 2009, 11:21 IST

Oil held above $60 a barrel in Asian trade today ahead of a meeting this week of the Organisation of Petroleum Exporting Countries (Opec).

New York's main futures contract, light sweet crude for delivery in July, was down 33 cents to $61.34 a barrel in morning trade.

Brent North Sea crude for July delivery retreated 23 cents to $60.55.

Prices eased as investors cashed in on profits ahead of the Opec meeting on Thursday.

"Traders are taking profit from the markets," said Mark Pervan, a senior commodities analyst with ANZ Bank in Melbourne.

"It's probably a view that there is less likelihood of an output cut. OPEC has been fairly quiet on cutbacks so far."

Algerian oil minister Chakib Khelil was quoted by Dow Jones Newswires as saying that he expected oil prices to hit $70 a barrel next year.

Oil at $70 a barrel is widely seen as the sustainable level for producers to resume large efforts to search for oil and gas.

The global economic crisis which towards the end of 2008 has seen energy demand plummet, dragging prices along with it.

Oil prices have fell from a record around $147 a barrel in July to about $32 in December as demand dropped off but have since risen gradually.