Global oil prices extended losses in Asian trade Tuesday after an overnight slump on comments made by world's largest oil exporter Saudi Arabia.
Light sweet crude for March contract was seen trading at$ 87.59 a barrel at 12.30 p.m Singapore time while Brent crude was at $ 96.38 a barrel in London.
Analysts said the black gold fell to the lowest in almost eight weeks after Saudi Arabian Oil Minister Ali al-Naimi signalled OPEC may bolster production and maintain spare capacity to meet rising fuel demand.
Saudi Arabia has consistently said it is comfortable with oil prices in the $70 to $80 a barrel range, though oil prices have so far hit a 2011 high of $92.58.
Prices previously settled lower at $86.75 on Dec. 1, and are down 4 percent this year. Yesterday, the contract lost $1.24, or 1.4 percent, to $87.87, the lowest since Dec. 16.
On Monday, New York's main contract, light sweet crude for delivery in March, fell for the fifth straight session amid speculation that supplies may rise. The benchmark contract dropped $1.24 from Friday to $87.87.
In London, Brent North Sea crude for March settled 99 cents lower at $96.61.
Analysts said oil markets are likely to remain highly volatile during the day as investors awaits outcome of a key US Federal Reserve policymakers meet later Tuesday.
