Bloomberg.com: India & Pakistan

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.