Oil rises to near USD 74 as traders eye OPEC, demand

SINGAPORE: Oil prices rose to near USD 74 a barrel today amid expectations OPEC plans to leave production levels unchanged at its meeting next week. A slightly weaker dollar and cold weather on the US East coast also helped support prices.

By early afternoon in Europe, benchmark crude for January delivery was up USD 1.22 to USD 73.87 in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract fell 1 cent to settle at USD 72.65.

Investors will be watching closely the output policy decided at the Organization of Petroleum Exporting Countries' meeting Tuesday in Luanda, Angola. Leaders of the 12-member cartel have said they would like the price of oil above USD 70 a barrel and so far signaled they plan to keep production unchanged.

"Crude oil prices are likely to remain within the range of USD 70-USD 80 by the end of the year, with investors waiting for confirmation over OPEC compliance decisions, oil inventories, and global economic figures," said a report from Sucden Research in London.

Traders are also looking for evidence demand for crude and its products is improving. Energy Department data released earlier this week showed US demand for distillates such as heating oil and diesel were at its highest since March due to colder weather and a growing economy, Barclays Capital said.