In a reaction to volatile equity markets yo-yoing due to prolonged uncertainity of US economy, Monday saw world oil prices dip in trading in Asia, on lingering uncertainly over the US economy. New York's main contract, light sweet crude for delivery in March, dipped to US$90.16 per barrel. Brent North Sea crude for March slipped to US$90.40 a barrel. This downward correction can be attributed to the weak close of Wall Street last week and lowe Asian markets.
Key Asian stockmarkets opened lower on Monday after last week's volatile market leading to US shares losing ground on Friday. This has been coupled with the expectation by investors of another Federal Reserve rate cut this week amid persisitent uncertainty about the US economy. Last weeks' report by the US Department of Energy showed a rise in US crude inventories by 2.3 mln barrels in the week to Jan 18.