OPEC gears for global recovery

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OPEC is relying on a recovery in the world economy to wipe out an overhang of oil supply, allowing ministers at a policy meeting today to hold back from any more output cuts.

Oil prices have almost doubled since hitting a low of US$32.40 in December, reaching a six-month high of $63.45 a barrel on the New York Mercantile Exchange today.

The Saudi Arabian oil minister, Ali al Naimi, said the higher prices reflected expectations of a recovery.