LONDON, Jan 7: Oil prices slumped again Tuesday amidst signs that Opec is poised to open up the taps to help calm a feverish market worried about a strike in Venezuela and war clouds over Iraq.

The price of benchmark Brent North Sea crude oil for February delivery fell to $29.31 a barrel from $30.20 at the close of trading on Monday, when prices had fallen by 57 cents.

In New York, light sweet crude February-dated futures fell 98 cents a barrel to $32.10 on Monday.

A five-week old strike in Venezuela that has paralysed crude shipments coupled with the threat of a US-led war in Iraq have sent oil prices soaring above 30 dollars a barrel in London and New York.

But the oil market has come off the boil somewhat since the members of Opec indicated that they were ready to raise production soon if prices remain high.

The Wall Street Journal Europe reported on Tuesday that Saudi Arabia and Opec members back a plan to increase oil production by up to two million barrels per day. Opec is pushing even big non-member producers such as Mexico, Norway and Russia to increase output, the newspaper said.

“There is a realisation that a shortage might take place,” the newspaper quoted a senior Opec official as saying.—AFP