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"It's definitely a defensive measure to keep prices above US$100 [Bt3,500]," Jonathan Kornafel, a director for Asia at Hudson Capital Energy, was quoted by Bloomberg as saying in response to Opec calling on its members to stop producing more than the group's set quota.

"They don't want to see us go back to $140 or $150, but they want us over $100. It's a bit of a shock to the market, and that's why we're up."

Oil rose yesterday from a fivemonth low after Opec surprised the market by announcing it would cut production by about 520,000 barrels a day, a small but symbolic reduction.

But gold, copper and wheat extended declines on reduced inflation concerns and as world equity markets slumped on gloomy growth prospects in Europe and the US.

"This is a broad commodity selloff," said Mark Pervan, a commodity strategist at the Australia and New Zealand Banking Group in Melbourne.

"It's the dollar driving it real¬ly", he added, although it is fuelled primarily by "disappoint¬ing economic data".

Crude oil jumped in New York as Opec president Chakib Khelil called on members to stop pro¬ducing more than the group's set quota after prices fell to almost $100 a barrel.

Opec is producing about 520,000 barrels a day more than their 28.8millionbarrel limit, Khelil said. Oil has fallen 30 percent from a record $147.27 a barrel on July 11 as high prices and slowing global economic growth reduced demand for fuel.

Crude oil for October delivery climbed as much as $1.41, or 1.4 percent, to $104.67 a barrel on the New York Mercantile Exchange and traded at $104.62 late yesterday morning in Singapore. The contract had fall¬en as much as $1.20, or 1.2 per¬cent, to $102.06 a barrel prior to Opec's announcement.

But earlier, the US government lowered its oilprice forecast for this year.

West Texas Intermediate crude oil, the US benchmark, will aver¬age $115.81 a barrel this year, the US Energy Department said in its monthly ShortTerm Energy Outlook. The forecast is down 2.75 per cent from last month's estimate of $119.09 a barrel, the report from the department's Energy Information Administration showed.

Meanwhile, gold for December delivery fell 2 per cent to $776.20 an ounce late yesterday morning in Singapore. It earlier reached $766.80, the lowest for a mostactive contract since October 25.