By Christian Schmollinger Oct. 24 (Bloomberg) -- Crude oil pared gains on concern a potential OPEC output cut is insufficient to stave off price declines as global economic growth slows and fuel demand falls. OPEC is expected to slash at least 1 million barrels a day of production when it meets today in Vienna, according to a Bloomberg News survey. Iran's Oil Minister Gholamhossein Nozari said yesterday a 2 million barrel-a-day reduction was needed. U.S. fuel demand fell 8.5 percent from a year ago, the Energy Department said Oct. 22. ``Anything less than 2 million barrels and we're headed lower,'' said Mark Waggoner, president of Excel Futures Inc. in Irvine, California, in an interview with Bloomberg Television. ``The markets are going to go down from here to $58.'' Oil for December delivery was at $67.64 a barrel, down 20 cents, on the New York Mercantile Exchange at 12:38 p.m. Singapore time. It earlier rose as much as $1.66, or 2.5 percent, to 69.50 a barrel. Prices are down 22 percent from a year ago and 5.9 percent this week. Brent crude oil for December settlement was at $65.66 a barrel, down 26 cents, on London's ICE Futures Europe exchange at 12:36 p.m. Singapore time. It earlier rose as much as $1.41, or 2.1 percent, to $67.33 a barrel. Oil has dropped from the record $147.27 a barrel in New York on July 11 as slowing economic growth curbs demand. China, the world's fastest-growing energy consumer, said Oct. 20 its economy expanded at 9 percent in the third quarter, the slowest pace in five years. Concern a deepening global slump will damp profits has pushed the MSCI World Index 4 percent lower this week. OPEC Cuts Prices dipped during trading yesterday after Saudi Arabian Oil Minister Ali al-Naimi declined to express his support for a possible cut, on his arrival in Vienna. Saudi Arabia and Iran are the Organization of Petroleum Exporting Countries' two biggest producers. ``Who said anything about a cut?'' al-Naimi said. ``Prices will be determined by the market.'' OPEC should cut production by 2 million barrels a day to stem the slump in prices and ``balance'' the market, Iranian Oil Minister Gholamhossein Nozari said earlier. OPEC leaders are scheduled to meet in Vienna today at 9 a.m. local time. The last time OPEC lowered quotas was at a December 2006 meeting in Abuja, Nigeria. The 500,000 barrel-a-day cut took effect in February 2007, expanding an earlier reduction agreed to in October. The cuts were reversed later in 2007 as prices rose. To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.

Source