Oil falls amid hoped OPEC output increases

New York -- Oil prices closed below $98 Monday amid hopes OPEC would boost oil output as the U.S. dollar weakened and the U.S. Northeast anticipated colder weather.

Light, sweet crude for January delivery fell 48 cents, or 0.49 percent, to $97.70 a barrel on the New York Mercantile Exchange.

Prices had reached $99.11, the highest price since last Wednesday's record $99.29. Prices are 65 percent higher than a year ago.

Oil traders said record-high crude prices would pressure Organization of Petroleum Exporting Countries representatives to raise output more than 1 percent when they meet Dec. 5 in the United Arab Emirates.

The dollar closed at $1.4878 against the euro Monday after reaching a record low of $1.4967 last week.

The National Weather Service forecast colder-than-normal weather next week in the U.S. Northeast, the primary market for U.S. heating oil.

Natural gas gained 2.3 cents, or 2.43 percent, at $7.723 per 1,000 cubic feet.

Heating oil added 0.24 cents, or 0.09 percent, at $2.7066 a gallon.

Reformulated-gasoline blendstock for oxygen blending fell 2.56 cents, or 1.04 percent, at $2.4414 a gallon.

AAA said the average U.S. retail regular unleaded gasoline price was $3.085 a gallon, down 0.1 cent from Sunday's $3.086 a gallon.

Copyright 2007 by United Press International.