SINGAPORE: Brent crude held above $100 a barrel on Wednesday, supported by fears that OPEC could cut oil supply if prices fall more, although data from major economies pointing to slower growth and fuel demand capped gains.
Oil has propped above $100 this week after calls from OPEC oil hawks Venezuela and Iran for an emergency meeting ahead of one already scheduled on May 31. The Organization of the Petroleum Exporting Countries pumps more than a third of the world's oil and meets twice a year to coordinate supply. It kept oil output limits unchanged at a meeting in December.
Brent futures edged up 26 cents to $100.57 a barrel by 0425 GMT, after closing lower on Tuesday for the first time in four sessions. US oil rose 47 cents to $89.65.
"Saudi Arabia has said they prefer $100 Brent so expectations are if prices fell below $100, OPEC would cut production," said Tony Nunan, a risk manager at Mitsubishi Corp.
Brent is still averaging about $110 this year, possibly easing the pressure for any output cut, while global oil markets would have passed the weakest point in annual demand by end-May, Nunan said.
Brent is expected to rebound to $101.63 per barrel, driven by an upward wave c, while US oil is expected to end its current rebound at or below $90.27, according to Reuters technical analyst Wang Tao.
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