Oil prices rose sharply today after Venezuela, concerned about recent lower prices, said it would ask OPEC at September's meeting to agree to a cut in output.
New York's crude jumped $2.88 to $114.65 a barrel as a result, coming off early lows. London's Brent North Sea crude rallied $2.65 to $114.60.
Venezuela will propose production cuts at the next OPEC meeting in September if oil prices continue to fall, Venezuelan Energy and Petroleum Minister Rafael Ramirez had said today.
Oil prices fell close to $110 earlier as Tropical Storm Fay missed energy production facilities in the Gulf of Mexico while weak data on the US economy stoked concerns that demand in the world's biggest market will slow.
Prices have fallen significantly since hitting record highs above $147 last month. Yet are still almost 15% higher compared to the start of the year when oil broke through $100 for the first time.
