World oil prices tumbled on Monday after OPEC kingpin Saudi Arabia said over the weekend that the oil cartel might raise output to help combat high energy rates, analysts said.
New York's main contract, light sweet crude for December delivery, shed 2.15 dollars to 94.17 dollars. Last Wednesday it had hit an historic peak of 98.62 dollars.
In London on Monday, Brent North Sea crude for December delivery slumped 1.91 dollars to 91.27 dollars. On Wednesday it struck an all-time high of 95.19 dollars.
"Crude futures were down following comments from Saudi Oil Minister Ali al Nuaimi, OPEC's most influential voice," Sucden analyst Michael Davies said Monday.
Nuaimi had told reporters during a short visit to Kuwait that talk of a hike in output was premature.
But he added: "When OPEC meets, we will discuss this issue."
He did not specify which meeting of the Organization of the Petroleum Exporting Countries he was referring to.
OPEC is holding a summit in Riyadh on November 17-18 and ministers are also due to meet in Abu Dhabi on December 5.
Kuwait's acting oil minister Mohammad al-Olaim meanwhile said that OPEC will "not hesitate to shoulder its responsibilities."
He added that the cartel would be willing to increase output "if there is a need to raise production in accordance with market parameters."
Victor Shum, an analyst with energy consultancy Purvin and Gertz, noted that OPEC had been "unusually quiet" during the recent record-breaking run for oil prices.
"So any talk of action out of OPEC would be calming news," he added.
Meanwhile recent comments from US Federal Reserve chairman Ben Bernanke that the US economy would likely slow in the first part of 2008 also led to falling prices on expectations of lower demand.
"With the cautionary comments coming last week from the US Federal Reserve about the fate of the US economy, that has provided a reason for traders to pull back the pricing," said Shum.
Crude oil prices had struck historic heights last week on fears of tight energy supplies in the United States, the world's biggest energy user.
"In the US, crude oil stocks have fallen ... and now stand just 5.8 million barrels above the five-year average, compared with as much as 40 million barrels back in July," Barclays Capital analyst Kevin Norrish said on Monday.
"In the meantime, Europe is also experiencing a sharp deterioration in the oil inventory position," he added.
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