Reply #20: Oil edges up despite economic fears

[54anickel]

Investors worry that rising number of mortgage defaults in U.S. will impact consumer confidence, crimping oil consumption.

http://money.cnn.com/2007/03/16/markets/bc.markets.oil.reut/index.htm

LONDON (Reuters) -- Oil prices edged higher Friday after OPEC left supply limits unchanged, but remained sensitive to weakness in equity markets, reflecting concerns about economic growth in the United States.

U.S. crude rose 18 cents to $57.73 a barrel.

London Brent crude was 2 cents down at $60.66. Brent has risen to a premium to U.S. crude because of production disruptions in Nigeria and a firm North Sea market.

Oil prices have been under pressure as troubles in the U.S. housing finance sector have heightened fears in world stock markets about the health of the economy in the United States, the world's biggest oil consumer.

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"There's a big cloud in the sky. The question mark is about the U.S. economy and concerns over the housing industry because that will have a big impact on consumer demand, which may affect oil consumption," said Andrew Harrington, an analyst at ANZ Bank.

OPEC, which pumps more than a third of the world's oil, is also concerned about the implications of the equity market weakness.

"We are watching developments on world stock markets, to assess their possible impact on the global economy and, in particular, on energy demand," said OPEC President and United Arab Emirates' Oil Minister Mohammed bin Dhaen al-Hamli.

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