Oil prices sliding

Oil fell yesterday, extending the past three sessions' decline, as the growing threat of a US economic downturn outweighed supply worries in Iran and Nigeria.

US light crude for February delivery fell US23c (29c) to US$92.46. US oil settled down US$1.02 at US$92.69 a barrel on Friday, dragged down by fears of a potential US economic recession.

"There was some bullish news out of Iran and Nigeria that could have pushed up oil prices, but Asian markets are focusing on the health of US economy for now," said Gerard Burg, a resource analyst at National Bank of Australia (NAB) in Melbourne.

US recession concerns were stoked by American Express Co's warning on Friday of mounting credit card defaults, and also affected Asian stocks on Monday.

Despite oil's slide in the past three sessions, analysts said geopolitical tensions in Iran and Nigeria would continue to lend support to prices.

US President George W. Bush accused Iran on Sunday of threatening security around the world by backing militants and urged his Gulf Arab allies to confront the issue.

While Iran has agreed to answer remaining questions about its past nuclear activities within a month during talks with International Atomic Energy Agency, the war of words between the US and Iran has rekindled worries that Iran, the world's fourth-largest crude exporter, could cut oil exports to retaliate against US pressure.

In Nigeria, militants fighting for autonomy in the country's oil-producing south detonated a remote-controlled bomb on an oil tanker on Friday.

- REUTERS