Oil falls from record highs

By Maryelle Demongeot

LONDON (Reuters) - Oil prices fell from near record highs on Thursday after Saudi oil minister Ali al-Naimi said markets were well supplied, shrugging off falls in U.S. crude and fuel stocks and bullish Chinese economic data.

U.S. crude was down 67 cents to $110.20 a barrel by 3:09 p.m., having earlier risen to within one cent of the $112.21 record hit in the previous session.

London Brent crude was down 40 cents at $108.07 a barrel, having earlier set a new record at $109.98.

"The market rallied on the weak dollar and Nigerian problems overnight, but Saudi talk of a market well supplied may have capped it," said Tom Bentz, analyst at BNP Paribas Commodities Futures Inc.

Saudi Oil Minister Ali al-Naimi told reporters in Paris the market was still well supplied and record prices were not due to any lack of oil.

"I am not going to pull back. I'm not going to dump crude on the market," Naimi said when asked whether Saudi Arabia might change its output.

Despite pleas by consuming nations for OPEC to raise oil production to help cap rising oil prices, its members insist the markets remain well supplied.

In Nigeria, liftings of Qua Iboe crude oil are expected to be delayed for the second month in a row, traders said on Thursday.