The New Nation - Internet Edition

AFP, New York

Oil prices rose back above 95 dollars yesterday (Monday) amid predictions that OPEC will not discuss raising output at its weekend summit and fresh tensions over Iran.

New York's main contract, light sweet crude for December delivery, jumped 1.67 dollars to close at 95.10 dollars per barrel. The December contract expired Friday.

In London, Brent North Sea crude for January delivery climbed 1.39 dollars to settle at 91.62 dollars per barrel.

"Geopolitics, strained and threatened supplies and economic vitality continue to be the motivators for higher prices," said John Kilduff, an analyst at MF Global.

OPEC ministers in Riyadh, Saudi Arabia, hammered out the agenda for a rare summit of the cartel this weekend, with record oil prices high on the agenda.

The gathering comes with the cartel under pressure to increase its output to help calm record crude prices that threatened to breach 100 dollars a barrel for the first time last week.

Ministers have ruled out any production increase, at least until another meeting next month, and leaders are expected to focus instead on climate change, development and ensuring long- term stability of prices. Heads of state of the 12-member Organization of the Petroleum Exporting Countries are to gather on Saturday and Sunday for a summit that is only the third since the cartel's formation 47 years ago and which will formalize the return of former member Ecuador.

Algerian Energy Minister Chakib Khelil said on Friday that prices would remain at current levels until the end of the 2008 first quarter and would not break the 100-dollar barrier.