Oil prices rose today after the US government reported that gasoline inventories had fallen for the fifth straight week and Opec's president warned the group may decide to further reduce output.
Opec last month announced its intention to cut production by 1.2 million barrels a day - 4 per cent of its output - to shore up falling oil prices.
But market scepticism about how serious Opec members are about reducing their quotas has meant oil prices have failed to rally. President Edmund Daukoru said that is leading to deliberations within the group about further cutbacks when oil ministers meet next month in Abuja, Nigeria.
"We very well might cut more output in December," Mr Daukoru, who is also Nigeria's oil minister, said.
Many industry sources believe Opec will achieve about half of its announced cuts as member countries like Iran and Nigeria remain determined to maximise oil revenues.
In its monthly oil market report, Opec kept its global oil demand forecast for this year unchanged, calling for growth of 1.2 per cent from 2005 but warned that bulging oil inventories could lead to "further imbalance" in the market.
Light sweet crude for December delivery rose 33 cents to $59.09 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. January Brent crude prices rose 32 cents to $60.93 a barrel on London's ICE Futures exchange.