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Last Updated: Monday, 2 October 2006, 10:58 GMT 11:58 UK
Oil prices rise after output cuts
Barrels of oil
Oil prices have fallen more 20% since late July
Global oil prices rose on Monday after Venezuela and Nigeria said they were cutting production.

The move by the two countries is seen as a means to shore up crude prices which have fallen 20% since late July's highs, due to easing supply concerns.

By late morning in Europe, US light crude had risen seven cents to $62.95 a barrel, while London's Brent crude was up 10 cents to $62.58 a barrel.

Oil producers group Opec said Venezuela and Nigeria were acting on their own.

Although both are members of Opec, the body is sticking to its stance that there are no current plans to reduce overall Opec production.

The 11-strong group presently has an official production ceiling of 28 million barrels per day, which has been in place since July 2005.

Iranian situation

Nigeria and Venezuela are reducing their combined oil production by 170,000 barrels per day.

Back in July, oil prices hit record highs of $78 due to fears of sanctions against Iran over its nuclear plans, and the fighting between Israel and Hezbollah militants in southern Lebanon.

The threat of sanctions against Iran has since receded, and the last Israeli troops have now left Lebanon.

Venezuela is the world's ninth largest oil producer and Nigeria the 12th biggest.


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