Oil fell below $95 a barrel on Tuesday as investors bet that the OPEC exporter group will boost supply for a second time this year at a meeting next week to cool near-record prices.
U.S. oil dropped $3.00 to $94.70 a barrel by 12:23 p.m. EST. London Brent crude fell by $2.55 to $92.77.
The Saudi oil minister ,Ali al-Naimi, said the kingdom, the world's top exporter, had raised production to 9 million bpd, slightly more than its target under an OPEC deal to boost output from November 1. But Naimi declined to comment on what the group will do next week in Abu Dhabi.
We will look at all information available, and decide accordingly, on whatever the information tells us about supply, demand, inventories, Naimi said in Singapore, where he is due to speak at an energy conference on Wednesday.
Consumer worries over dwindling stockpiles, an influx of financial funds and the unprecedented weakness of the U.S. dollar have driven oil to record highs near $100 in recent weeks.
Prices could rebound on expectations of cold weather in the United States that would draw down heating fuel stocks.
The onset of colder weather in the U.S. Northeast, a major consumer of heating oil, has also bolstered prices as traders bet that higher winter demand will strain inventories.
U.S. distillates inventories, which include heating oil, are likely to fall by 1.4 million barrels when data for last week is reported on Wednesday.