OIL futures prices fell yesterday amid concerns about economic growth and on profit-taking ahead of the November contract's expiration. However, doubts about a possible ceasefire between Turkey and Kurdish rebels in Iraq helped crude pare some of oil's losses.

The stock market's sharp downturn Friday has reignited concerns that the US economy might be slowing, cutting demand for oil and petroleum products.

But traders also sold to lock in profits from a rally in which oil futures jumped almost 14 percent in less than two weeks. Light, sweet crude for November delivery reached a record US$90.07 a barrel on Friday morning; it settled Monday at US$87.56, down US$1.04 from Friday's close on the New York Mercantile Exchange.

"You get to US$90, and people say 'Here's a nice chance to take some profit,"' said Kevin Saville, managing editor for the Americas energy desk at Platts, the energy research arm of the McGraw-Hill Cos.

However, oil regained some ground before the close on concerns that an expected Kurdish cease-fire might not have much effect. Turkey has rejected such cease-fire declarations in the past, saying it would fight until all rebels surrender or are killed.

Turkish forces were seen moving toward the Iraq border yesterday after an attack by Kurdish rebels that left 12 soldiers dead and eight missing. Crude traders worry that a Turkish incursion into Iraq would cut oil supplies from northern Iraq.

December oil, meanwhile, fell 93 US cents to settle at US$86.02 a barrel on the Nymex.

Other energy futures followed crude lower. November gasoline fell 3.53 US cents to settle at US$2.1334 a gallon, and November heating oil fell 1.97 US cents to settle at US$2.3109 a gallon.

November natural gas fell 15 US cents to settle at US$6.891 per 1,000 cubic feet. Natural gas prices are under pressure from unseasonably warm temperatures in the north and Midwest and a forecast that this winter will be warmer than normal.