Oil rises as production cut looms

Oil prices have fallen $15 below July's peak of $78.40 a barrel

Oil prices have risen above $63 a barrel after the president of the Opec producers' cartel said he favoured another cut in output.

Opec's 11 members meet next week and are poised to trim production again after October's decision to cut output by 1.2 million barrels per day.

Prices were also boosted by threats of more violence from Nigerian militants, who are targeting foreign oil firms.

US crude rose $1 to $63.53 by 1350 GMT and Brent crude rose $1.20 to $63.78.

Opec members, which include Saudi Arabia, Iraq, Venezuela, Nigeria and Iran, have been trying to underpin oil prices after they fell from a peak of $78.40 a barrel in July to below $60 in October.

One key factor has been the fact that countries are holding higher stocks of oil than usual. The US recently announced that it had stockpiled 340 million barrels, 14% more than average.

Oil producers have also been hit by the steady decline in the value of the dollar, in which the commodity is priced and sold.

Prices have rebounded somewhat since production was trimmed, but most officials are supporting a further cut in output, which needs to be agreed at a meeting in Nigeria on 14 December.