Low US oil stocks hikes price

OIL prices leapt last night after it emerged US stocks were at their lowest level since March.

Crude prices closed up $1.84 at $44.61, a rise of more than 4%, on the New York Mercantile Exchange. In London, October Brent crude rose $1.83 to $42.22 yesterday.

The US Energy Information Administration said stocks fell by 1.4m barrels last week to 285.7m, a sixth straight weekly decline. Traders has expected a decline of 800,000 barrels.

'With crude oil inventories usually falling through much of September, at least until some refineries begin their extensive fall maintenance programs, crude oil inventories may be nearing the bottom of this latest cycle,' the EIA said.

Opec meets in Vienna on Wednesday to review output policy.

Although prices have come down from the August highs of $49.40, they are still up more than 30% from the beginning of the year.

The group will decide whether or not to increase official output quotas from 26m barrels per day to match actual output of about 27.8m.

Some member countries have asked for the organisation's target price range to be raised from $22 to $28 a barrel to $25 to $30.