* Oil higher, comments ahead of OPEC meeting support
* Saudi minister says producers, consumers happy with prices
* Market awaits delayed US inventory data due later in week
(Updates prices, adds comment)
By Chris Baldwin
LONDON, Sept 8 (Reuters) - Oil prices rose above $69 a
barrel on Tuesday ahead of an OPEC meeting, which analysts said
would see more target compliance rhetoric but no change in
output limits. []
NYMEX crude for October delivery <CLc1> stood at $69.60 a
barrel by 1125 GMT, up $1.58 from Friday's close. There was no
settlement price on Monday because NYMEX was closed for the U.S.
Labor Day holiday. []
London Brent crude <LCOc1> rose $1.62 to $68.15 a barrel.
The Organization of the Petroleum Exporting Countries meets
in Vienna on Wednesday, with most analysts expecting OPEC, the
source of more than a third of the world's oil supply, to
maintain its official price target of around $70. []
"Nobody expects anything from them," said oil analyst Eugen
Weinberg at Commerzbank. "There are some other issues;
compliance, non-OPEC production, and huge ventures worldwide
that might still have an impact, but otherwise nobody expects
them to cut any more production.
Crude prices, although up 50 percent so far this year, are
still less than half their peak struck in July 2008, and
consumers and producers are happy with that, Saudi Arabia's Oil
Minister Ali al-Naimi said on Tuesday. []
Naimi described the oil market as "steady and in good shape,"
although when asked if oil inventories were too high, said "Yes,
they are a little bit."
Compliance with output targets remains an issue.
"A major issue will be compliance. It will be discussed and
stressed by many countries with the hope others will comply," a
Gulf delegate at the meeting said.
"The most likely outcome is that they will keep the ceiling
and quota unchanged," he said. "It's going to be a smooth and
easy meeting." []
For a preview of the OPEC meeting, click on []
For graphics on OPEC compliance and output cuts, click:
http://graphics.thomsonreuters.com/099/CMD_OPCMPL0909.gif
http://graphics.thomsonreuters.com/099/CMD_OPEC0909.gif
GOLD SPARK
Oil prices, which fell 6.5 percent last week, have been
trading in a range between $65 and $75 a barrel since the start
of August, with prices swinging on economic data as investors
seek clues about the speed of a recovery from the recession.
Traders said Tuesday's early gains were rangebound but came
as spot gold shot past the key psychological $1,000 per ounce
mark at 0753 GMT. []
"Gold is a bit stronger, as are the stock markets, but we're
still in the same range as we were yesterday," said Christopher
Bellew, an oil broker at Bache Commodities.
Investors will be on watch for inventory data, delayed by a
day this week due to Monday's holiday.
The American Petroleum Institute's petroleum stocks report
will be delayed one day to Wednesday, Sept. 9, at 4:30 p.m. EDT
(2030 GMT) and Energy Information Administration snapshot of
crude oil, distillates and gasoline stocks will be pushed out to
Thursday, Sept. 10, at 11 a.m. EDT (1500 GMT). []
"The big thing is distillate stocks, which are quite high,"
National Australia Bank's commodities economist Ben Westmore
said.
"People are assessing economic indicators -- industrial
production and so on to see if the supply overhang will be
redressed any time soon."
Traders will also keep an eye out as Tropical Storm Fred
formed in the eastern Atlantic Ocean on Monday with top winds of
40 mph (65 kph), but did not immediately threaten any land, the
U.S. National Hurricane Center said. []
(Additional reporting by Nick Trevethan in Singapore; editing
by James Jukwey)
