Oil prices rose above $81 a barrel today after Japan lowered interest rates, raising expectations that it will boost other major economies.

For November delivery US crude rose 11¢ to stand at $81.58 a barrel at 07.07 GMT, while London Brent crude added 12¢ to $83.40 a barrel, reports Reuters.

Crude oil inventories and petrol are expected to rise by 600,000 barrels and 100,000 barrels, respectively, while distillates will likely lose 800,000 barrels.

Iraq raised its proven oil reserves figure by a quarter in a bid to match leading producer Saudi Arabia and strengthen its case for OPEC to grant it a higher output quota.