Opec output adequate

MARKET REVIEW/ International - Crude Oil

Oil prices were steady on Wednes day as traders waited for fresh data later in the day on the health of US fuel stockpiles.

US light crude for September delivery was one cent to $40.45 a barrel after falling $1 on Tuesday. In that session the expiring August crude contract briefly touched a six-week peak at $42.30, just 15 cents off the all-time high for US crude futures at $42.45, before falling back sharply.

London's Brent crude rose 15 cents to $37.16 a barrel.

Fresh data from Chinese Customs on Wednesday showed June crude imports at a record of more than 11 million tonnes, while the country's buying for the first six months rose 39 per cent from a year ago to a little over 61 million tonnes.

China, which imports roughly one-third of its crude oil needs, overtook Japan last year to be the second biggest oil consumer after the United States.

Strong demand has heightened concerns over a lack of spare capacity with by geopolitical tensions in Iraq, Saudi Arabia, Nigeria, Venezuela and Russia -- all major oil-producing nations.

The OPEC producers' cartel, which cancelled last week a policy meeting scheduled for Wednesday, will raise its official output ceiling by 500,000 bpd from Aug. 1 to 26 million bpd, although actual group production is estimated roughly two million bpd above that level.

OPEC President Purnomo Yusgiantoro said on Wednesday the Organisation of the Petroleum Exporting Countries only had spare capacity for the short term.

"We have spare capacity but for the short term. Therefore, we call on non-OPEC producers to help add to supply to stabilise oil prices,"Purnomo said.