Singapore: World oil prices fell more than a dollar in Asia today despite a fresh US interest rate cut and after OPEC hinted it will not raise output.

In early morning trade, New York's main contract, light sweet crude for delivery in March, was 1.15 dollars lower at 91.18 dollars a barrel.

The contract gained 69 cents to close at 92.33 dollars per barrel in floor trading on the New York Mercantile Exchange yesterday.

Brent North Sea crude for March delivery rose 53 cents to settle at 92.53 dollars in London yesterday.

New York prices had initially fallen below 92 dollars on news that US crude stockpiles rose for a third successive week, but then gained after the US Federal Reserve slashed a half-point from its key interest rate to ward off recessionary risks in the US economy, the world s biggest energy consumer.

But the action by the Fed, the United States central bank, came hours after the US government reported that economic growth plunged a steeper than expected 0.6 per cent in the 2007 fourth quarter, down from a robust 4.9 per cent pace in the third quarter.

Analysts said the number, the weakest pace of growth since the 2002 fourth quarter, could bode ill for future oil demand and prices.

"Any momentum looks to be tempered by the weak GDP number," said Mike Fitzpatrick, an analyst at MF Global, who added that a rate cut "should help mitigate the economic slowing worries and brighten the outlook for energy demand."

Ministers from the Organisation of the Petroleum Exporting Countries (OPEC) have gathered in Vienna ahead of a meeting Friday at which the oil-producing cartel is expected to maintain its output quotas.
Source : PTI