* Euro falls to one-week low versus dollar
* Saudi oil minister says $70-$80 price "ideal"
* Coming Up: Fed meeting minutes from Sept. 21; 1800 GMT
(Adds OPEC monthly report, updates prices)
By Zaida Espana
LONDON, Oct 12 (Reuters) - Oil prices slipped for a second
day on Tuesday, falling towards $81 a barrel after Saudi Arabia
signalled OPEC would maintain current production levels at the
group's meeting and as the dollar rallied against the euro.
U.S. crude for November <CLc1> slid 60 cents to $81.61 a
barrel by 1130 GMT, off an earlier session low of $80.88 and
down nearly $3 from last week's five-month high of $84.43.
ICE Brent <LCOc1> fell 47 cents to $83.25.
The dollar rose by 0.3 percent against a basket of
currencies <.DXY> in Tuesday morning trade, after scrambling off
recent steep lows against the euro and the yen on Monday. []
"What we've seen this morning is the dollar is still a bit
stronger, not only against the euro but also against a basket of
currencies," said Andrey Kryuchenkov of VTB Capital.
A stronger dollar renders dollar-denominated commodities
more expensive for non-dollar holding buyers.
The market is also awaiting the minutes of the FOMC meeting
on September 21 for indications on the likely extent of a widely
awaited second round of quantitative easing in the United
States, commonly referred to as QE2, although many analysts said
the market has already priced this in.
"We believe the actual onset of QE2 will further lift oil
prices," Michael Lo from Nomura Global Equity Research said in a
note.
"However, given the different starting points for oil prices
and economics between QE1 and QE2, we believe the impact of QE2
will be less pronounced."
"IDEAL" PRICE
Saudi Arabian Oil Minister Ali al-Naimi said he was happy
with the oil market as he arrived in Vienna on Monday for the
first meeting of the Organization of the Petroleum Exporting
Countries (OPEC) in seven months, to take place this Thursday.
[]
Naimi also said prices of between $70 and $80 were "ideal,"
indicating the producer group's most powerful member has no
plans to pursue higher prices.
"The market is very well balanced, everyone is happy with
the market," Naimi said. "I am comfortable with economic
growth."
OPEC has not officially changed its production ceiling since
December 2008. Levels of compliance with implied targets,
however, have slipped to 57 percent, according to a Reuters
survey, leaving plenty of scope to adjust output informally as
the market dictates. []
Separately, OPEC said in its monthly report on Tuesday that
there is a broad consensus oil prices around their current range
have helped support economic recovery and promote industry
investment. []
OPEC also left unchanged most forecasts for the oil market
in 2011, including those for world oil demand growth and global
demand for its own oil. It raised its estimate for world oil
demand growth in 2010.
A Reuters poll showed U.S. crude oil stockpiles are expected
to have risen for a second straight week last week, adding 1.3
million barrels in the week to Oct. 8 due to higher imports.
For more, see []
Industry group the American Petroleum Institute will issue
its weekly inventory report on Wednesday at 2030 GMT, a day
later than usual because of Monday's Columbus Day holiday.
Government statistics from the U.S. Energy Information
Administration will follow on Thursday at 1500 GMT, also a day
later than usual.
(Additional reporting by Joe Brock in London and Alejandro
Barbajosa in Singapore; editing by Keiron Henderson)
