December 05, 2007	Wednesday	Ziqa'ad 24, 1428

LONDON, Dec 4: Oil prices tumbled under $88 on Tuesday, with all eyes on the forthcoming Opec output meeting in Abu Dhabi as sentiment turned on whether there will be a production hike or not.

The (Opec, which pumps about 40 per cent of the world’s oil, was due to meet in the United Arab Emirates capital on Wednesday.

Although most of Opec’s 13 member nations want to keep its daily production quota unchanged at 27.25m barrels, Opec kingpin Saudi Arabia has refused to rule out a possible hike.

New York’s main contract, light sweet crude for January delivery, was down $1.77 to $87.54 per barrel in late afternoon trade.

London Brent North Sea crude for January shed 45 cents to $89.35.

“The market remains uncertain about Opec’s next move, with still no clear indication,” said Sucden analyst Nimit Khamar in London.

Aside from Opec, the market was also awaiting Wednesday’s oil inventories report in the United States, the world’s biggest consumer of energy.

The report, which will cover the week ending November 30, is expected to show a further decline in US crude stocks and a rise for gasoline or petrol reserves.—AFP