Nov. 30 (Bloomberg) -- Oil fell below $90 a barrel for the first time in a month after Enbridge Inc. reopened the biggest pipeline to the U.S. from Canada and traders speculated that OPEC will increase production.

Enbridge said operations will return to normal within three days following a Nov. 28 explosion that shut three of four pipelines. Oil, which rose as high as $99.29 on Nov. 21, is headed for its biggest weekly decline in more than two years on expectations that the Organization of Petroleum Exporting Countries may raise output at a meeting in Abu Dhabi on Dec. 5.

``The market stopped panicking once three of the four pipelines were restarted,'' said Robert Laughlin, a senior broker at MF Global Ltd. in London. ``We could see OPEC providing between a half million and a million barrels next week.''

Crude oil in New York for January delivery declined as much as $2.49 cents, or 2.7 percent, to $88.52 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $89.93 at 1:28 p.m. London time. Oil has dropped 9.3 percent this week and is poised for its biggest five-day loss since April, 2005.

Brent crude oil for January settlement fell as much as $2.67 cents, or 3 percent, to $87.55 a barrel, the lowest since Nov. 1, on the ICE Futures Europe exchange in London. The contract last traded at $88.53 a barrel.

Thirteen of 27 analysts surveyed by Bloomberg News, or 48 percent, said oil will drop through Dec. 7. Nine, or 33 percent, said prices will rise and five forecast little change. Last week, 43 percent of respondents said oil would fall.

Cut Shipments

The Enbridge pipeline blast killed two workers and cut shipments that average 1.5 million barrels a day. The pipelines transport oil to U.S. refiners, including BP Plc's plant in Whiting, Indiana, and facilities along the Gulf Coast. The U.S. imported 10.3 million barrels a day last week.

OPEC raised shipments 2 percent to 24.53 million barrels a day in the four weeks to Dec. 15, according to consulting company Oil Movements. The group is implementing a 500,000 barrel-a-day output boost and may raise production further, analysts said.

``They will increase by 500,000 barrels,'' said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo. ``Saudi Arabia will press for an increase because the U.S. will place a lot of political pressure.''

The 10 OPEC countries subject to quotas will supply 27.5 million barrels a day this month, according to preliminary estimates by Geneva-based consultants PetroLogistics Ltd. That exceeds the official target of 27.25 million barrels.

Ali al-Naimi

Saudi Arabia, OPEC's biggest producer, is adding 500,000 barrels of spare capacity in December to ensure that consumers are adequately supplied, Oil Minister Ali al-Naimi said in Singapore on Nov. 28.

``The latest data shows OPEC's producing more than its quota,'' said Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich AG in Vienna. ``The market fears a recession in the U.S. more and more, and this will definitely hit demand.''

The U.S. economy is faltering after a third-quarter expansion as new-home prices dropped the most since 1970 and jobless claims rose to a nine-month high of 352,000 in the week ended Nov. 24.

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

Last Updated: November 30, 2007 08:31 EST