Oil prices drop as OPEC calms markets

Oil prices eased again today after more soothing comments from OPEC on supply security and amid worries that the world is about…

Oil prices eased again today after more soothing comments from OPEC on supply security and amid worries that the world is about to plunge into a recession that would stunt oil consumption.

London Brent blend futures dipped 49 cents to $26.78 a barrel after dropping more than a dollar on Tuesday. US light crude fell 50 cents to $27.20.

Brent, having spiked briefly to $30, is back below the levels seen before last week's attacks in the United States.

Dealers have been reassured by OPEC that it will not allow prices to get out of hand after a call from Washington for the cartel to take into account world economic health when setting output policy.

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Saudi Oil Minister Mr Ali al-Naimi said that the world's biggest exporter, with large volumes of spare capacity to call on, would prevent any shortages developing.

"We in Saudi Arabia, and in joint cooperation with OPEC producers, are committed to a stable oil market. We will make up shortages in supplies whenever they happen and for whatever reason," Mr Naimi said in a speech in China today The United States is likely to pressure key OPEC member states to towards oil prices in the coming months, even if markets stay calm, said Washington's Petroleum Finance Corp in a note to clients.