Oil prices steady after new surge

The focus is on US crude supply figures released on Thursday

Oil prices have paused for breath after jumping by nearly $3 a barrel on Wednesday following signs that Opec would not be increasing production.

A barrel of US light, sweet crude was worth $94.02 in electronic trading in Asia, down 7 cents from Wednesday's $94.09 closing mark in the US.

Opec's secretary-general rejected US calls for an early increase in oil output to try to hold prices in check.

Many analysts believe prices will ultimately rise above $100 a barrel.

In London, Brent crude fell 6 cents to $91.30 on Thursday morning.

'No shortage'

At this time, frankly we don't see that we need to add more oil in the market Abdallah al-Badri, Opec Secretary-General

A record high of $98.62 a barrel - unadjusted for inflation - was reached earlier this month on the back of a weak dollar, market speculation and concerns about tight supplies.

Prices eased slightly after the International Energy Agency lowered its global demand forecast for crude but concerns remain about future supplies and how responsive Opec will be to calls for increasing quotas.

Opec's secretary-general Abdallah al-Badri said on Wednesday that the global market was well supplied with oil.

"At this time, frankly we don't see that we need to add more oil in the market," he said ahead of an Opec summit this weekend to discuss long-term oil supplies.

"There is no shortage of oil."

The focus will now turn to Thursday's figures from the US government, which are expected to show that weekly crude oil stockpiles have fallen by up to 800,000 barrels.

The amount of fuel kept in reserve in the US is particularly important as the high-demand winter season begins.