October 24, 2006	Tuesday	Ramazan 30, 1427

LONDON, Oct 23: World oil prices fell on Monday as traders discounted Opec's recent output cut in the face of healthy crude reserves in the United States, which is the world’s biggest energy consumer.

New York’s main contract, light sweet crude for delivery in December, shed 83 cents to $58.50 per barrel in pit trading.

In London, Brent North Sea crude for December delivery shed 61 cents to $59.07 per barrel in electronic deals.“Crude futures were lower (on Monday), heading below $59 a barrel, remaining under pressure from doubts that Opec's will actually deliver production cuts agreed on Friday,” Sucden analyst Michael Davies said.

Last week, the Organization of the Petroleum Exporting Countries said it would reduce its output by 1.2 million barrels per day (bpd) to try to hold up prices, which have tumbled from records above $78 set in July and August.

The reduction was 200,000 barrels more than market expectations, but analysts remain sceptical over the impact of the decision.

“There is sufficient crude oil inventory ... even if Opec cuts production, it will not have a significant impact on the market,” said Tetsu Emori, the chief commodities strategist at Mitsui Bussan Futures in Tokyo.

“The market seriously thinks even if Opec cuts production ... the fundamental demand and supply balance is not getting tighter.”—AFP