July 24, 2007	Tuesday	Rajab 08, 1428

LONDON, July 23: World oil futures slid on Monday after reports that the Organisation of Petroleum Exporting Countries could raise its crude output amid near record-high energy prices, analysts said.

In London, Brent North Sea crude for September delivery dropped 90 cents to $76.74 per barrel in electronic deals.New York’s main oil futures contract, light sweet crude for delivery in September, sank $1.08 to $74.71 per barrel in floor trading.

“The market fell under pressure from comments by Opec President and United Arab Emirates Energy Minister Mohammed al-Hamli, who said on Sunday that oil’s strength and near record prices are of concern and that the group is prepared to pump more oil if needed,” Sucden analyst Michael Davies said.

“In addition, the head of Opec research said that a fair price for producers and consumers is around $60-65 per barrel. This statement was a first indication that the group is prepared to do something about rising crude prices.”

Opec is scheduled to meet on Sept 11, 2007 in Vienna, home to the group’s headquarters.

Under rising demand, geopolitical tensions and infrastructure problems, oil is commanding high prices not seen for nearly a year, luring speculators who are pushing prices ever skyward.

In the past month, crude prices have climbed about $7 in London and $5 in New York.

On Friday, oil prices dipped as traders paused for profit-taking in the heated rally. Still on Monday, Brent was less than $2 short of its record high of $78.64 per barrel.The historic peak was struck on August 7, 2006 after a pipeline spill forced British firm BP to close production at Prudhoe Bay, the biggest oil field in the United States.

New York crude has some ground to go before reaching its all-time high of $78.40 per barrel, set on July 13, 2006.Oil prices had rallied strongly last week after the International Energy Agency raised its 2008 forecast for oil demand by 2.5 per cent to 88.2 million barrels a day.

The IEA has called for the Opec producers' cartel to pump more crude, notably during the ongoing US driving season, when demand for motor fuel shoots higher as American drivers hit the roads.

The Centre for Global Energy Studies on Monday added to calls for Opec to increase output.

“Without more Opec oil, prices will continue to rise in the coming months,” the CGES research group said in a monthly report.

—AFP