Oil prices rally after fresh fall

Prices have fallen steeply this year

Oil prices have rallied slightly after falling to their lowest level in 18 months on Tuesday amid concerns that Opec will not cut output further.

US light, sweet crude was trading up 23 cents at $51.44 a barrel on Wednesday, having closed at $51.21 on Tuesday - its lowest mark since May 2005.

A leading Opec official said the oil producers' body did not believe further cuts to production were needed now.

Mild weather in the US has forced prices down in recent weeks.

Market conditions

Analysts said Wednesday's rally was driven by speculation that prices were unlikely to drop much further as temperatures fall in the US North East, the world's largest heating oil market.

Concerns about excess supply at a time when demand is lower than normal at this time of year has put pressure on Opec.

Opec has committed to reducing output by 1.7 million barrels a day but Saudi Arabia's oil minister said it would not go further at this stage.

"There is no need now for further cuts on the basis of what market conditions are," Ali Naimi said.

Oil prices have fallen 16% so far this year, with Brent crude closing down 86 cents at $52.26 a barrel on Tuesday.