Opec sees no shortage despite rise in oil prices

US oil futures headed towards 108 a barrel on Monday, joining gains across commodities and equities markets. Light sweet crude for May delivery rose 1.31 cents to 107.54 a barrel by 1035 GMT after leaping 2.40 a barrel on Friday, recouping all of the week8217;s earlier losses. London Brent crude rose 85 cents to 105.73. Oil rose even as the dollar rallied on Monday, joining buoyant equity and credit markets in shrugging off last week8217;s soft US job data as investors took heart from central bank efforts to alleviate the global credit crunch.

8220;The key driver will be continued financial investors inflows into oil,8221; said Societe Generale in a report, reasserting its 107.50 forecast for average oil prices in the second quarter. 8220;On balance, we take comfort in the fact that front-month crude prices appear to have found a floor at 100, and appear to be trending sideways.8221; Analysts said fundamentals also supported prices. 8220;The biggest surprises could be on the supply side. Non-Opec supply is just not going up this year,8221; Paul Horsnell, oil analyst at Barclays Capital in London.