Oil rose toward $62 a barrel today as producer group OPEC kindled fears of production cuts, saying oil's steep slide from record peaks had brought prices too low.
US crude rose 41 cents at $61.86 a barrel late this afternoon, bringing the price well above Monday's six-month low below $60. London Brent rose 16 cents to $60.96.
Oil prices have had their steepest decline since the Gulf War in 1991, falling from July's peak of $78.40 a barrel.
The rebound today came after OPEC President Edmund Daukoru said the slide in prices was harming investment and that something needs to be done.
OPEC expects the global oil supply to be a 'colossal' 1.8 million barrels per day above demand by the second quarter of next year, he added.
OPEC sources have said the group has no plans to call an emergency meeting ahead of its scheduled 14 December meeting in Nigeria.
US crude has tumbled around 20% since its $78.40-peak in mid-July, taking back virtually all of this year's gains, on easing Middle East tensions, ample fuel stocks and slowing US economic growth.
