Commodity Online
SINGAPORE: Oil prices extended gains in Asian trade Tuesday and surged above $75, rising for the third consecutive session on expectations that OPEC will cut output soon.

Light crude for November delivery rose $1.17 or 1.9 percent to $75.69 a barrel by 10.00 am Singapore time adding to Monday's gains of $2.40. London Brent crude rose $1.18 to $73.21. The market hit a record over $147 in mid-July.

However, expectations that OPEC may only make modest output cut this week were limiting oil's gains.

Meanwhile OPEC member Libya on Monday said it was in favor of a production cut of more than 1 million barrels of oil a day ahead of a cartel meeting this week.

OPEC is due to hold a special meeting Friday at its headquarters in Vienna to announce production cuts amid falling oil prices.
Earlier Monday, Iran's ambassador to OPEC said the cartel may agree to cut oil production in stages.

Oil prices had reached a peak of $147 a barrel this year but slumped below $70 Thursday for the first time in more than a year, dragged down by prospects for reduced demand in the face of a global economic slowdown brought on by the world financial turmoil.