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NEW YORK: Oil prices traded narrowly mixed Thursday as the market weighed prospects for global economic recovery ahead of an OPEC meeting next week.
New York's main contract, light sweet crude for April delivery, inched up two cents to close at 82.11 dollars a barrel.
London's Brent North Sea crude for April shed 20 cents to settle at 80.28 dollars a barrel.
Mike Fitzpatrick of MF Global said the market has been been stuck in a holding pattern as traders try to find clear prospects for a durable recovery as the global economy emerges from recession.
"The rally that began on February 5 from the prominent low of 69.50 (dollars) has yet to break to new highs," Fitpatrick said.
"Economic data is still inconclusive and while the market has been creeping higher, momentum seems to be sporadic," he added.
Oil prices had closed higher Wednesday on news of a drop in crude oil and distillate stockpiles in the United States that suggested stronger demand in the world's largest energy consumer as it emerges from recession.
Strong economic data from China, the number-two energy consumer, also had lifted prices.
"We expect China to be the epicenter of global oil demand growth in 2010, more than offsetting the weakness emanating from Europe and helping put global oil growth back in positive territory for the year as a whole," said Amrita Sen of Barclays Capital.
The Organization of the Petroleum Exporting Countries meeting next Wednesday was widely expected to leave production quotas unchanged.
Qatar's OPEC minister said Thursday that he did not anticipate the cartel would change its official output quota at the meeting at OPEC headquarters in Vienna.
"I think there will be no change," Qatari Energy Minister Abdullah bin Hamad al-Attiyah told AFP.
"Inventories are high" despite the latest US data, he said.
"There is no panic or any issue with supply. There is no reason for a cut or even for an increase," the minister added.
OPEC on Wednesday forecast world oil demand would grow only 1.1 per cent this year, "given slow global economic recovery."
Jason Schenker at Prestige Economics said that the cartel that produces about 40 per cent of world crude output was unlikely to change its quota.
"With the global recovery on an uptick, and oil prices above 80 dollars per barrel, OPEC members are not going to lower quotas," he said.
In industry news Thursday, BP announced a major strategic deal that will give the British energy giant its first foothold in Brazil.
BP said it would pay US firm Devon Energy US$7.0 billion for deepwater assets in Brazil, Azerbaijan and the Gulf of Mexico.
The deal increases BP assets in Azerbaijan and the Gulf of Mexico and provides entry into Latin American powerhouse Brazil. The companies also formed a joint venture in an oil sands project in Canada.
- AFP/yb
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