Oil prices mixed in Asian trade

SINGAPORE: Oil prices were mixed in Asia Tuesday as dealers trod cautiously ahead of US President Barack Obama's State of the Union speech and as eurozone finance ministers discuss a debt bailout for Cyprus.

Talk of a currency war as Japan loosens monetary policy to stimulate its economy also spooked the markets and investors took advantage of the Lunar New Year holidays in Asia for some profit-taking, analysts said.

Traders seemed to be largely unmoved by news that North Korea had carried out a threatened nuclear test despite warnings against such a move by the international community, including ally China.

New York's main contract, light sweet crude for delivery in March, was down 10 cents to $96.93 a barrel and Brent North Sea crude for March delivery inched up four cents to $118.17.

"While much of Asia enjoys Lunar New Year holidays, Western markets ground lower while talk of a currency war continued," said Jason Hughes, head of premium client management at IG Markets Singapore.

"Traders remained cautious ahead of some key events in the coming days while profit-taking crept in... President Obama gives his State of the Union address tonight while European finance ministers meet in Brussels."

Investors were also watching a G20 gathering later this week and the results of a meeting of eurozone finance ministers on a financial bailout for Cyprus, analysts said. Cyprus is heavily exposed to Greece's public debt crisis.

"No firm decision is expected until after the completion of the Cypriot election at the end of this month," research house Capital Economics said.