OPEC has agreed to maintain severe restraints on oil production for the fourth quarter to keep crude prices riding high.
The Organisation of Petroleum Exporting Countries kept supply limits on hold despite worries among consumer nations about the impact of high energy costs on the world economy.
Cartel cutbacks, in place since January, have combined with the threat of a US war against Iraq to push benchmark US crude close to $30 a barrel - a setback for industrialised powers trying to sustain a shaky economic recovery.
'Prices are OK for producers and consumers,' insisted Saudi Oil Minister Ali al-Naimi. 'This is not a decision we took lightly. We had to take account of many uncertainties including Iraq.'
OPEC will meet again on December 12 to review policy for the first quarter of next year, by which time any US plans for military action may be clearer. Even in the event of war it seems there is no guarantee they will step in to prevent a price spike.
OPEC's decision kept the heat under oil prices, with US crude edging higher by 18 cents to $29.66 a barrel in electronic trade this morning. That values a basket of cartel crudes about a dollar short of the top of the group's $22-$28 target range.
Today's accord among the Middle East-dominated cartel came despite Saudi Arabia's misgivings about heavy leakage over production quotas. Delegates said Saudi had argued that ministers should consider a cosmetic increase in quotas to bring official limits more closely in line with real supplies.
Analysts said many in OPEC were opposed to an increase because they are pumping at, or near, capacity. By contrast, Saudi has large volumes to spare.
