Oil rallies as Opec quotas are held

<p>Oil has rallied as Opec holds its quotas after a key meeting of the industry group.</p>

Brent Crude Oil Futures have rallied in commodities trading this afternoon (December 12th) on news the Organization of Petroleum Exporting Countries' (Opec) production quota has held – despite demand fears.

Opec's output target remained unchanged after its latest meeting in Vienna, where ministers stuck with their ceiling of 30 million barrels of the black stuff a day, with this goal being decided one year ago.

However, analysts said the group's largest producer, Saudi Arabia, is likely to cut production on its own if prices begin to fall, while Opec data has shown the country has already slashed its output to its lowest level for a year.

In its final statement, the oil rig cartel said the biggest challenge facing the oil markets is the uncertainty surrounding the global economy, citing the fragility of the eurozone as an ongoing major worry.

At 16:35 GMT, Brent Crude Oil Futures rose by 1.4 per cent to $109.55 per barrel.

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