World oil prices dipped on Tuesday on profit-taking, after recent gains made in the expectation that the OPEC crude producers' cartel will unveil plans to cut output later this week. Skip related content
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New York's main contract, light sweet crude for delivery in November, handed back 29 cents to 73.96 dollars a barrel in electronic deals. The contract expires at the close.
Brent North Sea crude for December delivery fell 50 cents to 71.53 dollars a barrel.
"Oil futures were a little lower (on Tuesday), coming off after last night's gains on some profit taking and amid persistent concerns over slowing demand for energy due to the cooling global economy, especially with waning demand in the US and China," said Sucden analyst Nimit Khamar.
"However, theses losses were limited as market participants widely expect OPEC to reduce its output quota later on this week."
Oil had rallied almost 2.5 dollars on Monday, and rose in earlier Asian trade, on signs that OPEC will announce output cuts at a meeting in Vienna on Friday in a bid to shore up falling prices amid a global financial crisis.
Algerian Energy Minister and current OPEC chief Chakib Khelil said over the weekend that the cartel should order a "substantial" cut in production.
Crude futures have halved in value from record highs of above 147 dollars struck in July, prompting calls from key OPEC members that it should cut production targets to protect revenues.
On Tuesday, Iran's oil minister said Tehran believes OPEC should cut production by between two million and 2.5 million barrels a day, and that prices could go higher than 150 dollars a barrel.
"The market should find a stable condition, and given the eight to 10 percent decrease in demand and also given the oil stockpile I think a decrease of between two and 2.5 million barrels a day can bring a stable status to the market," Gholam Hossein Nozari said at a press conference in Tehran.
He added: "Given inflation and the current circumstances of the market, the current oil price is very low, and 150 dollars should not be out of the question.
"If oil prices do not reach a realistic level, they will go higher (than 150 dollars)."
Iran is the second-biggest exporter in the Organization of Petroleum Exporting Countries (OPEC) and its economy is heavily dependent on oil and gas income.
Meanwhile, Qatar's Energy Minister Abdallah bin Hamad al-Attiyah said Tuesday that the "best price" for oil was 80 to 90 dollars a barrel.
Libya said Monday it backed a production cut of more than one million barrels a day.
On Sunday, Venezuela also lent its support for a cut by OPEC, whose members together pump about 40 percent of the world's oil.
Crude prices slumped under 70 dollars last week for the first time in more than a year, dragged down by prospects of reduced demand in the face of a global economic slowdown stemming from the ongoing world financial crisis.
