Oil steady at $74 as traders eye Felix

Oil prices steadied above $74 (€54) today as traders watched a hurricane in the Gulf of Mexico, and Opec kept a lid on output…

Oil prices steadied above $74 (€54) today as traders watched a hurricane in the Gulf of Mexico, and Opec kept a lid on output ahead of its meeting next week.

US crude was up 10 cents at $74.14 earlier this morning after trading electronically yesterday when the US Labour Day holiday shut the New York trading floor. London Brent crude was down 14 cents at $73.27.

Felix, a dangerous Category Four hurricane, was due to hit land in Nicaragua and Honduras today, though oil and natural gas producers said they had not yet evacuated platforms in the Gulf of Mexico, home to a third of US domestic crude and 70 per cent of Mexican crude output.

Traders are also waiting for the meeting of the Opec on September 11th, with signs the group will retain output curbs.

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Consumer nations have been calling for more oil as the price climbs back towards its all-time high of $78.77 on August 1st. Oil analysts also say Opec must boost supplies to keep pace with growing demand this winter.

Opec has repeatedly said shortfalls of refined products are not its problem and that the world is amply supplied with crude.