Singapore: World oil prices fell almost two dollars in Asian trades today on demand worries as Wall Street's financial meltdown extended to Europe, triggering fears of a global slowdown, dealers said.

New York's main contract, light sweet crude for November delivery, sank 1.92 dollars to 91.96 dollars a barrel.

Brent North Sea crude for November fell 1.75 dollars to 88.50 from 90.25 on Friday in London.

"I think it's just sort of continuing the steepening gloom you are seeing," said Jason Feer, vice president of energy market analysts Argus Media in Singapore. He said that in the absence of weather or political factors to influence oil prices, investors "are concerned about the economic issues".

Yesterday, BNP Paribas announced it is taking control of ailing finance group Fortis's operations in Belgium and Luxembourg, in a deal which will make Belgium the largest shareholder in the French bank.

Germany also sealed a public-private rescue plan for the country's fourth biggest bank Hypo Real Estate as the government extended a blanket guarantee for all personal bank deposits to avert panic withdrawals.

The announcements came on the eve of a meeting of European finance ministers in Luxembourg. They will seek to flesh out broad plans for restoring confidence in the crisis-struck banking system, agreed to over the weekend by Europe's biggest economic powers.

"The risks of a severe international economic slowdown, possibly extending to a recession in some developed economies, have increased as a result of the recent strains in the international financial system," said David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney.
Source : PTI