Oil prices drop in Asia on Saudi output comments

SINGAPORE, Sept 9 (AFP) World oil prices fell in Asian trade today amid signs that OPEC will maintain production levels when it meets later in the day, analysts said. brNew York's main contract, light sweet crude for October delivery, fell 90 cents to 105.44 US dollars per barrel from 106.34 at the close of floor trading Monday in the US. brBrent North Sea crude for October delivery fell 73 cents to 102.71 dollars. brThe Organisation of the Petroleum Exporting Countries (OPEC) is due to meet later Tuesday in Vienna to discuss production targets, and the latest comments from its de facto leader, Saudi Arabia, suggest unchanged output levels. brThe market is fairly well balanced, said Saudi Oil Minister Ali al- Nuaimi, as he arrived in Vienna Tuesday for the meeting. brWe have worked very hard since June's meeting to bring prices to where they are now. I think everything is in balance. Inventories are in a healthy position. brExperts said the comments boosted expectations of oil price weakness. brIf the market is coming to a view that OPEC will not be doing anything at all, then I think you might see oil prices lower and I think that is what's happening right now, said Commonwealth Bank of Australia strategist David Moore. brOther OPEC members, including Kuwait and the United Arab Emirates, have called for no change in output levels. But Algeria, Iran, Venezuela and Libya have raised fears of oversupply and suggested the need for a cut. brOPEC President and Algerian Energy Minister Chakib Khelil had said on Monday that a production cut by the 13-member group, which pumps about 40 per cent of world oil, would be discussed. brOPEC is believed to be producing about a million barrels per day (bpd) more than its official ceiling of 29.67 million bpd, with Saudi Arabia accounting for most of the excess. brOil prices have fallen 28 per cent since reaching record levels of above 147 dollars in July, hit by worries of waning energy demand as a world economic slowdown takes its toll.