Oil prices edged above $71 a barrel today as traders eyed equity and currency markets for guidance on the eve of a meeting of the US Federal Reserve.
OPEC's president said over the weekend that current oil prices -- near six-week highs -- are 'not bad', in a signal the cartel is unlikely to cut output further at its September meeting.
US crude rose 31 cents to $71.24 a barrel this afternoon, while London Brent crude gained 41 cents to $74.00.
The US Federal Reserve will meet on Tuesday and Wednesday, amid expectations it will begin to raise interest rates. Dealers said the meeting, along with a slew of economic indicators toward the end of the week, could be pivotal to the direction of oil prices.
Meanwhile, the US National Hurricane Center said a low pressure system southwest of the Cape Verde Islands could develop into the first tropical cyclone of the Atlantic hurricane season.Tropical storms and hurricanes can impact energy supplies by shutting down offshore platforms and coastal refineries.
