Nabors Industries Ltd. fell Monday after it said lower-than-expected results in its pressure pumping, U.S. offshore and international businesses has hurt its operating income in the second quarter.

Nabors shares fell 62 cents, or 2.6 percent, to $23.41 in morning trading.

The Bermuda petroleum services company said it expects income before interest and taxes to range between $165 million and $170 million for the quarter. Analysts expected an average of $187 million, according to FactSet.

Nabors also said it expects full-year operating income to approach $900 million. Analysts expected $934.5 million.

Chairman and CEO Gene Isenberg said bad weather affected land-based operations in the U.S., including those covering the Bakken and Marcellus shale deposits. Nabors' international operation has dealt with rig upgrades, recertification efforts and civil unrest that delayed contract awards.

Its U.S. offshore business has been hampered by delays in getting permits, Isenberg said. "This situation is gradually improving, and we anticipate moderate profitability over the balance of the year and a return to more normal circumstances as we enter 2012," he said.

Oil slipped to near $98 per barrel Tuesday as investors anticipate increased crude production from OPEC countries.

Benchmark crude for July delivery gave up 62 cents at $98.39 per barrel in midday trading on the New York Mercantile Exchange.

The Organization of Petroleum Exporting Countries is expected to discuss a change in its production quotas at the cartel's meeting Wednesday in Vienna. Analysts say ministers could increase production in an attempt to push fuel prices lower and take some pressure off the world economy.

The move would be largely symbolic since most OPEC countries already produce more than their daily quota. Raising the quota could allow some countries to boost production even more.

"There's a lot of people who are nervous ahead of those meetings," independent oil analyst Jim Ritterbusch said. After a slew of gloomy reports on gasoline demand, unemployment, consumer confidence, housing and manufacturing, oil investors are less confident that oil will rise in the short term, Ritterbusch said.

"You're seeing a big rush to the exits on the part of hedge funds," he said.

Still, major investment banks say oil is headed higher later this year and into 2012. Rising global demand -- driven by China and other emerging economies -- will keep pressure on oil supplies.

Those forecasts were supported Tuesday by the U.S. Energy Information Administration's monthly outlook. The EIA said world oil demand will grow by 1.7 million barrels per day this year and another 1.6 million barrels per day in 2012. And despite a recent decline in gasoline consumption in the U.S., the government says drivers will burn an additional 3.4 million gallons per day in 2012.

Shares of cable company Cablevision Systems Corp. rose Tuesday, a day after it announced that a planned spinoff of its cable networks will take place at the end of June.

THE SPARK: On Monday, the New York-area cable company said its board of directors approved spinning off its AMC, IFC, Sundance Channel and WE TV networks as a group. Cablevision said it will spin off AMC Networks Inc. June 30.

THE BIG PICTURE: People who hold Cablevision shares as of June 16 will get one share of AMC Networks Inc. for every four shares of Cablevision they own. Shares of the spun-off company will trade on the Nasdaq stock market under the symbol "AMCXV."

THE ANALYSIS: Spinning off the networks will get Cablevision close to being a pure cable company, which could attract more investors, said Nomura analyst Mike McCormack in a note to clients.

But Cablevision will still own media properties, including a New York-area television network, local newspaper Newsday and movie theater chain Clearview Cinemas.