US crude edges higher after NKorea nuclear test

SINGAPORE, Oct 9 (Reuters) Oil edged up further to intraday highs above 60 dollar a barrel today, after North Korea said it carried out a nuclear test and as traders expected OPEC producers to cut supplies.

North Korea's Central News Agency said today the country had carried out a nuclear test, driving up the dollar but only giving a brief lift to oil. The country is not an oil producer or major consumer so oil traders are focusing less on North Korea than on potential disruption in producers Iran, Iraq and Nigeria.

US crude traded 68 cents higher to 60.44 dollar a barrel by 0850 hrs IST, after hitting a high of 60.48 dollar, adding to gains earlier in the session as OPEC is expected to formalise today a cut to its official production ceiling of 28 million barrels per day (bpd) by 1 million bpd.

The plan by the Organization of the Petroleum Exporting Countries (OPEC), which pumps more than a third of the world's oil, expands on marginal supply cuts announced last month by Nigeria and Venezuela.

Oil prices have halted a slide from a record-high of 78.40 dollar in July, but fundamentals are weighed down by bulging inventories, with US distillate stocks at their highest level since 1999.

The dispute over Iran's nuclear programme remained another potentially bullish factor for the oil market.

REUTERS DKA BD0930