Oil prices hit new high

Oil prices rose to a new six-month high ahead of Opec's meeting

Oil prices rose to a new six-month high ahead of the meeting of the Opec oil cartel in Vienna.

Crude oil for July delivery hit 63.45 dollars a barrel - on the New York Mercantile Exchange - raising the prospect of more forecourt misery for motorists.

Although Opec is not expected to cut production this week, oil prices tracked a sharp rise in US stock markets after better than expected consumer confidence data.

Traders also reacted to reported comments from Saudi oil minister Ali Al-Naimi that a recovering global economy could cope with oil prices of up to 80 dollars a barrel.

In London, Brent crude also rose above 62 dollars a barrel.

Oil prices have jumped from below 35 US dollars a barrel in March on investor expectations that the worst of the global economic slowdown is over.

Prices peaked at 147 dollars a barrel last year before the recession hit.

Opec is unlikely to add to 4.2 million barrels a day of production cuts the cartel has announced since September.

But Vienna-based JBC Energy said huge global stocks of oil could lead to a future Opec output cut even if there is no significant increase in demand.

"If the group sticks to its current production target on Thursday it is very likely they will have to reduce output at a later meeting," JBC said.