Nov. 27 (Bloomberg) -- Crude oil fell for a second day on speculation OPEC will increase production as record prices threaten to stifle economic growth.

Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries, is pumping 9 million barrels a day, Oil Minister Ali al-Naimi said in Singapore today. October production averaged 8.75 million barrels a day, according to estimates compiled by Bloomberg.

``Signs that OPEC are delivering on their promise to provide more barrels are taking the edge off prices today,'' said Rob Laughlin, a senior broker at MF Global Ltd. in London.

Crude oil for January delivery fell as much as $2.46, or 2.5 percent, to $95.24 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $95.62 at 1:08 p.m. in London.

``Our concern going forward, however, is the demand scenario,'' MF Global said in a report today. ``High prices and a slowing global economy suggest that the desire for crude oil could fade.''

Crude traded in New York fell 48 cents, or 0.5 percent, to $97.70 a barrel yesterday. It reached $99.29 on Nov. 21, the highest since trading began in 1983.

The Standard & Poor's 500 Index dropped to a 14-week low yesterday on signs shoppers in the U.S., the world's largest oil-consuming nation, are cutting spending. The National Retail Federation is forecasting the slowest increase in holiday-season sales in five years.

London's Brent

Brent crude oil for January settlement fell as much as $2.22, or 2.3 percent, to $93.10 a barrel on the London-based ICE Futures Europe exchange. It was at $93.49 at 1:08 p.m. London time. It dropped 0.5 percent to $95.32 yesterday.

OPEC pumps more than 40 percent of the world's oil and will review its output quotas at a meeting in Abu Dhabi on Dec. 5. It agreed in September to add an extra 500,000 barrels a day starting Nov. 1 to bolster supplies going into the peak winter demand period. That would increase output for the group's 10 quota-controlled members to 27.2 million barrels a day.

Those 10 nations pumped 27.14 million barrels a day last month, out of a group total of 31.16 million, according to a Bloomberg survey of analysts and producers.

All 12 members will probably supply 31.6 million barrels a day in November, compared with 31.25 million barrels a day estimated for October, Conrad Gerber, president of Geneva-based consultant PetroLogistics Ltd., said by telephone.

`Incremental Barrels'

``If prices are threatening $100 as we get to the meeting, there's 60 percent chance we'll see another 500,000 barrel-a-day quote increase, but I don't think any more supply comes out of that,'' said Mike Wittner, a London-based energy analyst with Societe Generale. ``OPEC is going to be cautious about adding incremental barrels.''

Abu Dhabi National Oil Co., the biggest oil-producer in the United Arab Emirates, will resume production from its 280,000 barrel-a-day Lower Zakum West field on Dec. 6, a company official said today.

The field, which produces more than 10 percent of the U.A.E.'s daily oil output, has been completely shut down since the end of October for the installation of a gas facility.

An Energy Department report tomorrow may show U.S. supplies fell 750,000 barrels last week, based on a Bloomberg News survey of 11 analysts.

Hedge-fund managers and other large speculators increased their net-long position in New York crude-oil futures in the week ended Nov. 20, according to U.S. Commodity Futures Trading Commission data released yesterday.

Speculative long positions, or bets prices will rise, outnumbered short positions by 49,840 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 22,274 contracts, or 81 percent, from a week earlier.

To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net

Last Updated: November 27, 2007 08:11 EST