Oil climbs again ahead of OPEC policy meeting

Oil climbs again ahead of OPEC policy meeting

LONDON (Reuters): Overheated oil markets roared higher on Monday as dealers grew convinced that any OPEC supply increase agreed at an imminent policy meeting would fail to tame runaway prices.

London Brent crude for October had moved 61 U.S. cents higher by midafternoon to US$32.46 a barrel -- stretching well past the $30 mark oil consumers the world over regard as extortionate.

Dealers were hoping OPEC power Saudi Arabia would make a more definite commitment to cool off oil prices during a meeting in New York this week between Crown Prince Abdullah and President Bill Clinton.

Likely to take place on Wednesday on the fringes of the United Nations Millennium Summit, the session will touch on ways to bring down global oil prices, a U.S. official said on Friday.

The United States, the world's biggest oil consumer, prefers to see oil prices around $25 a barrel, a price target shared with the kingdom.

Washington has been sounding the alarm again over rocketing oil prices and depleted oil stockpiles.

Last month fears that U.S. heating oil supplies may fall short this winter pushed Brent to a 10-year high of $32.80 and U.S. crude to within $1 of a new post-Gulf War record.