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SINGAPORE - OIL prices rose slightly in Asia on Wednesday after fears for economic growth sent prices into their steepest fall in 17 years during New York trading, analysts said.
New York's main oil contract, light sweet crude for August delivery, was 15 cents higher at US$138.89 (S$187.24) a barrel.
The contract sank US$6.44 to close at US$138.74 a barrel on Tuesday at the New York Mercantile Exchange. It was the sharpest single-session decline since January 1991.
'I was stunned,' said Mr Dave Ernsberger, Asia director of global energy information provider Platts. 'At one point crude futures fell by US$10 in one hour.'
Brent North Sea crude for August delivery was a penny higher at US$138.76 a barrel following a plunge of US$5.17 to settle at US$138.75 on Tuesday in London.
Analysts said the falls coincided with US Federal Reserve chairman Mr Ben Bernanke's semiannual forecast to Congress. He said there was a 'high degree of uncertainty' about the US economic outlook.
Traders fear that a slowing economy in the United States, the world's biggest oil consumer, will hurt demand for crude.
The market was looking ahead to a weekly report on US energy stockpiles which was to be released later on Wednesday.
Oil prices had soared after breaking through US$100 at the start of 2008, and hit peaks above US$147 last Friday. The record prices sparked protests around the world amid fears for economic growth. -- AFP
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