Oil prices fall on increased Opec output hopes

Oil prices have fallen on hopes that the Opec cartel of oil producers might be about to boost production for the first time in two years.

US light crude was down $1.61 at $103.84 a barrel, while Brent crude was down 85 cents at $114.19 a barrel.

US crude oil prices been near two-and-a-half year high amid fears Libya could be facing a full-blown civil war.

But remarks by Kuwait's oil minister that Opec is considering raising output seem to have soothed oil markets.

"We are in consultations about a potential output increase," said Sheikh Ahmad al-Abdullah al-Sabah.

But he added that there had been no decision over output quotas yet.

Mark Pervan, head of commodities research at ANZ in Melbourne, said: "There's no doubt the market is concerned about supply at the moment so any comments giving support to supply would be a trigger for profit-taking.