Oil rises for third day
Oil hovers at $102Tensions between Russia and the West escalated after U.S. President George W. Bush condemned Russia for recognising breakaway regions in Georgia. nN26346120
"We are not convinced that this crisis will be bullish for the energy markets as any 'punishment' meted out by the West will steer well clear of Russia's energy sector," Meir said.
Oil hit a record peak of $147.27 on July 11, propelled by the weak dollar, investment inflows and concerns about the long-term supply outlook.
But it has fallen back sharply since then partly in response to increased supply from Saudi Arabia, the world's biggest exporter and a drop in demand because of high prices.
On Tuesday, the U.S. Energy Information Administration reported that oil demand in the world's top energy consumer in June fell 5.6 percent from a year ago.
Nobuo Tanaka, executive director of the International Energy Agency, said Saudi Arabia's increase plus a drop in demand especially in the United States had helped prices to fall.
"The market has started responding to fundamentals," he told Reuters. "What I expect from OPEC is to keep pumping at the same level after the increase."
The Organization of the Petroleum Exporting Countries is due to meet next on September 9 to review output levels.
The market is awaiting latest weekly oil inventory data from the EIA, due at 10:35 a.m. EDT (3:35 p.m. British time).
An Reuters poll of analysts showed an average forecast for a 1 million-barrel rise in U.S. crude stocks and a 500,000 barrel build in distillates.
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