Oil fell today amid a decline in global stock markets and hopes that Opec may increase output.
US oil dropped 59 cents to $97.11 a barrel by earlier today after shedding more than $1.00 earlier in the session. London Brent crude fell by 48 cents to $94.84 a barrel.
But Saudi Oil Minister Ali al-Naimi gave no sign today whether Opec would agree this year's second output rise when it meets next week. He however confirmed that the kingdom had raised production to nine million barrels per day.
Opec ministers will weigh the risks of a credit slump and possibly a recession in the United States, potentially curbing future demand, against concerns of a supply shortfall in the Northern Hemisphere's peak winter season that has driven the rally in oil prices to near $100.
Oil prices were also depressed by a decline in US shares, with major indices down around 2 per cent yesterday on investors' concerns that rising mortgage defaults and credit market losses would drag on the economy.