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WORLD oil prices fell in Asian trade on Tuesday amid signs that OPEC will maintain production levels when it meets later in the day, analysts said.
New York's main contract, light sweet crude for October delivery, fell 90 cents to 105.44 US dollars (S$150.97) per barrel from 106.34 at the close of floor trading on Monday in the US.
Brent North Sea crude for October delivery fell 73 cents to 102.71 dollars.
The Organisation of the Petroleum Exporting Countries (Opec) is due to meet later on Tuesday in Vienna to discuss production targets, and the latest comments from its de facto leader, Saudi Arabia, suggest unchanged output levels.
'The market is fairly well balanced,' said Saudi Oil Minister Ali al-Nuaimi, as he arrived in Vienna on Tuesday for the meeting.
'We have worked very hard since June's meeting to bring prices to where they are now. I think everything is in balance. Inventories are in a healthy position.'
Experts said the comments boosted expectations of oil price weakness.
'If the market is coming to a view that Opec will not be doing anything at all, then I think you might see oil prices lower and I think that is what's happening right now,' said Commonwealth Bank of Australia strategist David Moore.
Other Opec members, including Kuwait and the United Arab Emirates, have called for no change in output levels. But Algeria, Iran, Venezuela and Libya have raised fears of oversupply and suggested the need for a cut.
Opec President and Algerian Energy Minister Chakib Khelil had said on Monday that a production cut by the 13-member group, which pumps about 40 per cent of world oil, would be discussed.
'Everybody agrees that we will have an oversupply problem of between half a million and one-and-a-half million (barrels per day) by early next year,' he said as he arrived in Vienna.
Opec is believed to be producing about a million barrels per day (bpd) more than its official ceiling of 29.67 million bpd, with Saudi Arabia accounting for most of the excess.
Some analysts believe Saudi Arabia would be happy to see prices fall below 100 dollars a barrel to help stimulate economic growth.
Oil prices have fallen 28 per cent since reaching record levels of above 147 dollars in July, hit by worries of waning energy demand as a world economic slowdown takes its toll.
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