Oil recovers slightly as Opec plans action

London: Oil rose above $57 (Dh209.1) a barrel yesterday, recovering from a 22-month low as it drew limited support from news Opec might take more emergency action to compensate for a deep drop in energy demand.

US crude was up 85 cents at $57.01 by 1434 GMT, recovering from a session low of $54.67 - the weakest level since January 30, 2007.

London Brent crude gained 48 cents to $52.85.

The International Energy Agency yesterday in a monthly report slashed its global oil demand growth forecast for next year and said this year's increase in consumption had been the slowest since 1985.

It predicted demand would next year expand by only 350,000 barrels per day (bpd) - down 340,000 bpd from its forecast in last month's report.

Faced with the prospect stocks will swell as consumers stop buying, pushing prices even lower, the Organisation of Petroleum Exporting Countries said it was considering an emergency meeting on November 28 in Cairo.

Only last month, it agreed to cut output by 1.5 million bpd at emergency talks in Vienna.

"The only thing supporting the market is the possibility of Opec cuts at the end of the month, but the production cuts wold probably only be in step with falls in demand," said Christopher Bellew of Bache Financial.

"The economic picture is terrible and the IEA only confirmed that."

Oil has lost more than 60 per cent of its value since July.