Oil prices remained strong on Friday, reflecting market expectations that there is no early end in sight to supply shortages.
In London, benchmark Brent crude for October delivery was being traded at 30.62 dollars a barrel, 46 cents higher than Thursday's close.
In New York on Thursday, light sweet crude for September delivery closed at 31.94 dollars, 14 cents higher.
Earlier this week in London, prices spiked to 10-year-highs of well over 32 dollars a barrel.
Analysts said that the movement was exaggerated ahead of the expiry in London of the September contract, but the underlying reality was nevertheless that US stocks were hovering around 24-year-lows.
Some analysts have also blamed the continued strong prices on comments from Venezuela and the Saudi press suggesting the Organization of Petroleum Exporting Countries (OPEC) would hold back from any output increase until its meeting on September 10 in Vienna.
But others pointed out that no increase is expected before then in any case under OPEC's price band mechanism.
The mechanism provides for an automatic output increase of 500,000 barrels per day if the price of a basket of OPEC crudes stays above 28 dollars per day for 20 consecutive days.
The basket price has been above 28 dollars since the start of the week.
Hugo Chavez, President of Venezuela, which holds the rotating OPEC presidency, reiterated his commitment to the mechanism during his tour of OPEC members, which ended on Tuesday.
He also uttered some tough anti-West comments and defied the United States by becoming the first head of state to visit Baghdad since the Gulf War.
However, GNI Research in its daily note commented that Venezuela seemed to be toning down its rhetoric.
Speaking in Caracas on Wednesday, Venezuelan Oil Minister Ali Rodriguez said that OPEC members were unanimous on the "common need to stabilize the oil market."
Members agreed the mutual benefit of "securing advantageous prices (for producer nations) ... but without affecting the economies of the consumers," Rodriguez told Union Radio - LONDON (AFP)
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