Oil prices shot up Monday in the wake of a weekend explosion at a British storage facility, an OPEC decision to maintain its output at current levels and the onset of cold temperatures in the Northeastern United States.

Light sweet crude oil for January delivery was trading at $61.30 US per barrel, up $1.91 US from Friday's close.

At a meeting in Kuwait, OPEC oil ministers said they would maintain their current official output quota of 28 million barrels per day.

OPEC's President Sheik Fahd Al Ahmed Al Sabah speaks during the opening of the 138th Meeting of the Organization of Petroleum Exporting Countries in Kuwait City. (AP photo)

While many members of the cartel currently exceed their limits, the announcement from Kuwait was seen by market followers as a move towards stricter adherence to the cap.

OPEC ministers said they will meet Jan. 31 in Vienna, Austria to review production levels for the second and third quarters of 2006.

Prior to the meeting, Saudi Oil Minister Ali Naimi said cold weather in the U.S. Northeast – a major oil-consuming region – was responsible for the recent rebound in crude prices.

Another factor weighing on markets were Saturday's explosions that rocked the Buncefield depot, which is about 40 kilometres north of London, England.

The depot is a major distribution terminal for oil, gasoline and kerosene, supplying airports across Britain, including Heathrow. It also supplies fuel for a large part of southeast England. However, a spokesperson for oil giant BP said there would be no problems with fuel shortages.