Oil prices fall on Opec comments

Opec has concerns about the impact of oil prices on economic growth

Oil prices settled below $77 per barrel in London, after comments from producer cartel Opec added to speculation that it might increase output.

Brent oil, seen as the best indicator of global prices, settled 78 cents down at $76.86 per barrel in London as sweet crude settled at $74.89 in New York.

It comes a day after Opec boss Mohammed al-Hamli aired concerns about the economic impact of near-record prices.

Analysts remain unsure whether Opec is likely to change output by year end.

"We are concerned about the higher price, because we don't want to go through a recession," Mr al-Hamli was quoted as saying by news agency Reuters.

Despite Opec's concerns about the potential impact of rising prices, to date it believes there is little sign that this trend has dented growth.

Mr al-Hamli said that demand from emerging markets including China and India was solid, but whether that meant Opec should increase output by year end was yet to be decided.

The concerns come after London Brent crude reached $78.40 a barrel last week - marking an 11-month peak - and approaching the $78.65 record hit in August 2006.