Reply #8: Oil Up As OPEC Holds Production Steady

[ozymandius]

SINGAPORE - Oil prices jumped Monday as OPEC agreed to maintain its present production levels and anticipation grew that energy demand would strengthen as colder weather settled in in the northeastern United States, the world's largest heating oil market.

Explosions at an oil terminal north of London on Sunday also raised supply concerns, but authorities said the blasts will not lead to a shortage.

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Oil ministers from the Organization of Petroleum Exporting Countries agreed Monday to keep oil spigots open and maintain production at the group's highest-ever levels — at least for now.

The widely expected decision was reached at a ministerial policy and production meeting and was made public by Libyan Oil Minister Fathi Hamed Ben Shatwan. But the group reserved the right to consider cuts in early 2006 should robust demand flag and high prices fall.

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