Singapore: World oil prices were slightly higher today in Asian trade, hovering near 90 dollars in a market focussed on the fate of the United States economy, dealers said.

In late morning trade, New York's main oil futures contract, light sweet crude for delivery in March, rose six cents to 91.05 dollars per barrel. The contract closed up 28 cents at 90.99 dollars a barrel yesterday during floor trading on the New York Mercantile Exchange.

Brent North Sea crude for March delivery rose 16 cents to 91.54 dollars a barrel after settling 48 cents higher at 91.38 dollars yesterday in London.

Steve Rowles, an analyst at CFC Seymour securities in Hong Kong, said the market is focussed on the US economy, with dealers awaiting US economic data expected later this week and the outcome of a two-day Federal Reserve meeting which was to begin today.

Most analysts expect the Fed, the US central bank, to trim at least another quarter point off its key federal funds interest rate, currently 3.50 per cent after an emergency 0.75 per cent cut last week in a move aimed at calming global financial markets roiled by fears of a widening US recession.

Oil prices have recently reacted to gyrations on global equity markets, and are off their early January historic highs of 100.09 dollars for New York's light sweet crude and 98.50 dollars for Brent.

But oil is still trading at elevated levels thanks to keen demand and limited supplies, traders said. "Prices remain very well-supported in the high 80s despite huge volatility in financial markets," Barclays Capital analyst Kevin Norrish said earlier.

Source : PTI