Lagos — Oil prices jumped to a new six- month high above $64 a barrel yesterday after the Organisation of Petroleum Exporting Countries (OPEC), at its 153rd meeting in Vienna, Austria decided to keep output levels unchanged.

The 12- member group last changed supply targets in December last year, when it cut a record 2.2 million barrels per day (bpd) as it raced to match plummeting demand for fuel from an economy in recession.

Just after the December OPEC meetingin Algeria , the oil price dropped to $32.40, its lowest since early 2004. In total, the group, which supplies around a third of the world's oil has pledged to cut 4.2 million bpd or around five percent of global supply from last September's output levels.

The OPEC ministers at yesterday's meeting noted that after a review of the oil market situation, as well as the demand and supplyprojections for 2009, in particular the third and fourth quarters, the group resolved to maintain current production levels for the time being.Member countries however expressed their commitment to the individually agreed production allocations, as well as their readiness to respond swiftly to any developments which might place oil market stability and their interests in jeopardy. Lead producer, Saudi Arabia had predicted that oil prices will likely rise to around $75 a barrel by the end of the year on the back of growing demand in Asia .

A release issued by OPEC yesterday said: "Having reviewed the oil market situation, as well as the demand and supply projections for 2009, in particular the third and fourth quarters, as presented by the Secretary General, the Conference observed that the severe and broad impact of the ongoing global economic downturn, precipitated by the financial crisis, has led to a weakness in global oil demand, which is likely to remain for some time. Indeed, since the second half of 2008, world oil demand growth has witnessed its first decline since the early 1980s"

While pleased to observe the positive effect that OPEC' sproduction decisions, aimed at redressing the supply/ demand balance, have had on restoring some degree of stability to oil prices, the conference noted that the crude volumes entering the market are still in excess of actual demand and that, although crude inventories have fallen over the preceding two months, stocks remain high (end-April 2009 OECD commercial oil inventories are standing close to the record high witnessed in February 1998).

"Moreover, very importantly, it was considered inadvisable to ignore the impact of the fall in crude oil prices witnessed over the preceding 12 months, coupled with the abiding price volatility, on the ability of oil producers to continue to make the investments required to guarantee adequate energy supplies in the medium-to-long term, given the cost of adding new capacity.

Although some recent positive economic indicators point towards the possibility of the recession bottoming-out before year-end, the world is nevertheless still faced with weak industrial production, shrinking world trade and high unemployment: for this reason, the conference decided to maintain current production levels unchanged for the time being.

In taking the above decision, the Heads of Delegation reiterated OPEC's statutory commitment to providing an economic and regular supply of petroleum to consuming nations, while, at the same time, stabilizing the market and realizing the Organisation's objective of maintaining crude oil prices at fair and equitable levels, for the future well-being of the market and the good of producers and consumers alike."

the group said in a release yesterday. Meanwhile, oil prices jumped to a new six-month high Thursday as government reports showed that consumers are spending money and fewer people are requesting first-time unemployment benefits.Benchmark crude for July delivery according to Associated Press, added 77 cents to $64.22 a barrel on the New York Mercantile Exchange. Oil fetched as much as $64.19 a barrel earlier in the day, the most since November 5. In London , Brent prices gained 72 cents to $63.22 a barrel on the ICE Futures exchange.In other Nymex trading, gasoline for June delivery rose less than a penny to $1.8984 a gallon and heating oil added 2.03 cents to $1.582 a gallon. Natural gas for July delivery was up 8.3 cents at $3.721 per 1,000 cubic feet. OPEC will meet again on September 9, in Vienna, Austria.