The price of oil fell back below $90 today amid speculation that oil exporters' cartel OPEC will decide to increase its output at a meeting next week.
They said prices also fell after it appeared more likely that an explosion on a key pipeline from Canada into the US would have only a limited impact on supply.
New York's main contract, light sweet crude for January delivery, was down $2.16 at $88.85 a barrel, after earlier striking a one-month low of $88.52. Brent North Sea crude for January tumbled $1.54 to $88.68.
The Organisation of the Petroleum Exporting Countries meets in Abu Dhabi on Wednesday with many participants expecting the group to boost output to help counter record-breaking prices.
The oil producers' group is a key player in the energy market because it produces about 40% of the world's crude. OPEC last decided to raise production in September when it agreed to provide an extra 500,000 barrels a day to the market from November 1.
Earlier this week, Saudi Oil Minister Ali Al-Nuaimi said the market was well supplied and that high prices did not properly reflect supply and demand.
Since striking record peaks just under $100 last week, prices have slumped by about $10 in New York and almost $8 in London.
On Monday however, prices staged a fresh assault on $100 on fresh concerns over supplies. The New York contract jumped as high as $99.11, just short of the record $99.29 struck the previous week. The market then tumbled owing to feverish speculation that OPEC might ramp up output, amid news of a smaller-than-expected drawdown of US energy reserves.
