OPEC chiefs fail to reach deal

OPEC chiefs fail to reach deal

VIENNA (AFP): OPEC energy chiefs did not reach an agreement on oil output Wednesday and delayed a final meeting to approve production levels until Thursday, the grouping's president Chakib Khelil of Algeria said.

"No agreement yet," Khelil told reporters as he emerged from an informal gathering of energy chiefs of the Organization of Petroleum Exporting Countries (OPEC), adding that a final decision would be taken "tomorrow".

Meanwhile, the price of oil fell sharply earlier in the day as traders in London ruled out an imminent output cut by the OPEC oil cartel and fretted about a recent buildup in U.S. stocks levels that highlighted weak demand.

The price of a barrel of Brent North Sea crude for November delivery fell US$1.48 a barrel to $20.90.

In New York, November-dated light sweet crude futures dropped 46 cents in early trade to $21.35 a barrel.

Prices were undermined by figures from the U.S. energy department showing that U.S. crude oil stocks swelled by 3.2 million barrels last week, painting a picture of a market with amply supply.

Gasoline stocks ballooned by 8.5 million barrels.

"With the build in gasoline we are seeing that the recession has kicked in," said Adam Stone, a trader with ED and F Man.

OPEC is walking a delicate tightrope between falling crude prices and political constraints after the Sept. 11 suicide attacks on New York and Washington.

Its basket price of seven crudes worldwide which it uses to help set output fell to $19.87 a barrel on Tuesday, the cartel's OPECNA news agency reported from Vienna.