Oil prices dipped going into the afternoon in London, falling below the $88 dollar mark as investors eyed a possible output hike from OPEC against a backdrop of a weakening global economy.
With OPEC ministers arriving in Abu Dhabi ahead of Wednesday's production meeting, all eyes are on the cartel which is responsible for around 40 per cent of global oil exports.
Investors have been pricing in a production hike since oil touched $99.11 in New York last Monday, heightening fears near record crude costs could tip a battered economy into recession.
However, with prices showing their largest ever weekly fall since then, and with fears a global slowdown could dampen demand for oil, OPEC's production decision is looking far from clear.
'In the current context OPEC's next move looks extremely uncertain and, if anything, last week's price slump has provided further ammunition to those in the group who are favouring a roll forward in production levels,' said Barclays Capital analyst Kevin Norrish.
'OPEC Secretariat balances are not conducive of a further output rise whereas comments by Saudi oil Minister Ali al-Naimi clearly suggest that OPEC ministers will meet with no pre-agreed consensus.'
At 12.50pm, New York WTI crude for January delivery was down $1 at 87.71 per barrel, having earlier touched a low of $87.47.
Meanwhile, Brent crude for January delivery was trading down 88 cents at $87.38 per barrel.
Early today, Qatari oil minister Abdullah al-Attiyah was quoted as saying OPEC is unlikely to increase crude oil output in remarks published today.
Mohammed Al-Hamli, the United Arab Emirates oil minister and OPEC's titular President, has also said the organisation was not responsible for higher prices.