4 Mar 2009

Oil rises nearly 4% in price

10:12 am on 4 March 2009

Oil prices rose nearly 4% on Tuesday on expectations that OPEC will cut output again.

US crude settled at $US41.65 per barrel, up $US1.50 or 3.74%. London Brent crude rose $US1.46 to $US43.70 per barrel.

Demand has slumped due to the global recession.

Prices are down from $US147.27 per barrel on 11 July, prompting the Organization of Petroleum Exporting Countries to agree to a series of production cuts totalling 4.2 million barrels per day.

Some OPEC members want another reduction when the cartel next meets on 15 March.