Oil prices slide on Iran remarks

Opec believes a fair price is between $60 and $65 a barrel

Oil prices fell by more than $1 a barrel on Tuesday amid suggestions from Iran that it may be prepared to increase supply to the market.

Its comments came on the back of a suggestion by the producer cartel Opec that more oil could be made available.

US light sweet crude for September delivery was down $1.33 to settle at $73.56 per barrel while in London, Brent crude fell $1.78 to $75.08.

Oil prices hit an 11-month peak last week, nearing August 2006's record.

"After soothing statements by the Opec president and the statement out of Iran that, in case the oil market needs it, Opec will inject more oil, the crude complex is in a free fall," said Nauman Barakat, of Macquarie Futures USA.

There was also a growing feeling that demand for petrol in the US was ebbing while inventories had grown, analysts said.

Concerned

Opec's head of research Hasan Qabazard was quoted on Monday as saying that a fair price for oil is between $60 and $65 a barrel.

The oil cartel has claimed for some time that oil supplies are adequate.

Mr Qabazard's comments reinforced the impression given by Opec's president Mohammed al-Hamli, who said over the weekend that he is concerned about the effect that high oil prices are having on the global economy.

"We are concerned about the higher price, because we don't want to go through a recession," he said.