LONDON Oil prices moved sideways on Monday as dealers gauged the likely impact of OPEC curbs on world inventories.

London Brent blend eased eight cents to $26.90 a barrel. In early trade and U.S. light crude was up three cents at $29.80.

Dealers said OPEC's 1.5 million barrel-a-day supply cut had put a floor under prices but that growing fuel stocks in the West and depressed refinery profit margins had limited buying.

Lower output limits from the Organization of the Petroleum Exporting Countries take effect in February and are expected to slow the recovery in petroleum stocks from last year's record lows.

Saudi Oil Minister Ali al-Naimi said at the weekend that OPEC intended to maintain prices around $25 for a basket of cartel crudes.

"I believe we will succeed in maintaining a stable price around $25," Naimi told a panel at the World Economic Forum's annual meeting in Davos. The OPEC crude basket was valued on Friday at $25.14.

He said he saw no reason why current oil prices should have an impact on world economic growth.

"According to recent analysis most of the highly industrialized fully developed countries in Asia, Europe and North America are able to absorb the effects of increased crude oil prices," said Naimi.

Traders are concerned that the economic slowdown in the United States will put a damper on world oil consumption.

(Reuter)