Oil prices edged lower today under pressure from fresh US economy concerns that struck down other markets a day ago.
US light crude for January delivery stood eight cents lower at $94.56 a barrel earlier this morning after recovering from deeper earlier losses as some Asian stock markets turned higher. Oil is still within sight of the record $98.62 record on November 7th.
London Brent crude fell 8 cents to $92.20 a barrel.
Oil prices gained yesterday despite renewed jitters over mortgage losses and the prospect of a weakening US economy that fuelled sharp losses on Wall Street and in other commodity markets such as copper and gold.
But growing worries about credit market losses began to take their toll today, raising concerns about oil demand in the world's top user, where consumption has already begun to dip.
Expectations of another rise in US crude stocks also dampened sentiment.
On the supportive side, the US dollar hovered near an 18-month low against the euro as investors remained cautious about risky currency trades. The dollar's decline has helped drive oil prices toward $100 a barrel.