London: Oil fell below $95 a barrel yesterday as investors bet that the Organisation of Petroleum Exporting Countries (Opec) will boost supply for a second time this year at a meeting next week to cool near-record prices.

US oil dropped $3.10 to $94.60 a barrel by 1420 GMT. London Brent crude fell by $2.77 to $92.55.

"Opec has been making a lot of noise about an output increase and that's why we see weak numbers today," said Tony Nunan, risk manager for Mitsubishi Corp.

Technical factors were also pressuring the market after prices surged to a record of $99.29 a barrel last week, traders said.

"The market is taking a breather from this $100 talk," a London-based trader said. "I wouldn't read too much into this sell-off."

Opec ministers will weigh the risks of a credit slump and potential recession curbing demand in top consumer the US, against concerns of a supply shortfall during the peak winter demand season.

Worries over dwindling stockpiles, an influx of fin-ancial funds and the unprecedented weakness of the US dollar have driven oil to record highs near $100 in recent weeks.

The US dollar recovered on Wednesday from news that Citigroup Inc will sell a stake to the Abu Dhabi government.

Prices could rebound on expectations of cold weather in the United States that would draw down heating fuel stocks.

The onset of colder weather in the US Northeast, a major consumer of heating oil, has also bolstered prices.