Oil prices climbed sharply Wednesday after OPEC, the cartel that produces 40 percent of world crude, held current output quotas unchanged despite a recent runup in prices.

Prices at the wholesale level plunged in February by the largest amount in seven months as a big drop in energy prices offset higher food costs.

OPEC oil ministers on Wednesday opted to keep their output targets unchanged in a bid to keep prices at present levels and send a message of stability to energy-hungry economies struggling to emerge from recession.

Reuters - Pakistan has signed a deal with Iran paving the way for the construction of a much-delayed pipeline pumping Iranian natural gas to the energy-starved South Asian country, officials said on Wednesday.

Pakistan and Iran signed agreements Tuesday paving the way for a seriously-delayed 7.5 billion-dollar gas pipeline.

OPEC formally decided Wednesday to hold oil output steady at its meeting here, according to an OPEC source.

OPEC ministers agreed not to change oil output targets they are already exceeding, anticipating that demand will pick up later in the year to mop up extra barrels.

Reuters - Bombing by Nigeria's biggest militant group in its oil delta this week will not derail an amnesty deal meant to restore security to Africa's largest energy industry, government and security sources said on Tuesday.

The consortium behind a new gas pipeline from Russia to Europe via the Baltic said Tuesday it had secured funding to start construction next month, aimed at easing worries over supplies by other routes.

Royal Dutch Shell Plc (RDSa.L) said it was planning a return to robust growth in oil and gas production after seven years of decline and unveiled strong reserves additions that should underpin longer-term growth aims. Europe's largest oil company by market value said it was targeting output of 3.5 million barrels of oil equivalent per day (boepd) in 2012, up from 3.15 million in 2009 -- equivalent to an annual growth rate of 3.5 percent.