Oil continues on falling after Saudis news (AP) (25-01-2011)

BANGKOK – Oil hovered below $88 a barrel on Tuesday in Asia extending losses after the Saudi oil minister hinted the world's biggest oil producer may raise supplies to put the brakes on higher oil prices. In addition, the price of oil has fallen more than 3 percent since Thursday, when it was close to $92 a barrel.

Benchmark crude for March delivery was down 33 cents at $87.54 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract lost $1.24 to settle at $87.87 a barrel on Monday.

According to Saudi Oil Minister, world oil demand is estimated to increase this year to between 1.5 million and 1.8 million barrels per day, higher than forecasts from the Energy Information Administration and the International Energy Agency.

In other Nymex trading, heating oil fell 0.4 cent at $2.616 a gallon and gasoline shed 0.6 cent to $2.408 a gallon. Natural gas rose 0.8 cent to $4.588 per 1,000 cubic feet.

In London, Brent crude was down 31 cents at $96.30 a barrel on the ICE futures exchange.

Source: AP