SINGAPORE: Oil prices were mixed in Asian trade on Tuesday, with investors closely following developments in the eurozone as Cyprus rethinks a controversial bailout deal, analysts said.
New York's main contract, light sweet crude for delivery in April, gained six cents to $93.80 a barrel at midday while Brent North Sea crude for May delivery dropped 13 cents to $109.38.
"Oil markets are likely to remain volatile for the next few days (with) investors monitoring for any spillover of the developments in Cyprus to other eurozone nations," said Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore, in a market commentary.
Eurozone officials on Monday signalled that a levy on all bank deposits in Cyprus, part of a rescue package agreed at the weekend, could be modified to lessen the impact on small depositors.
"The hint of flexibility by European policymakers settled a few nerves," said Jason Hughes, head of premium client management at IG Markets Singapore.
Saturday's agreement on the 10 billion-euro ($13 billion) bailout for Cyprus, the fifth eurozone member to call for help, is the first to call on private depositors to help foot the bill.
The US benchmark oil prices recovered modestly in New York on Monday, with some analysts saying the Cypriot economy was not large enough to have a significant impact on European and global economies.
"The market began to digest the fact that Cyprus is a very small part of the European economy," said Gene McGillian, a broker and analyst at Tradition Energy.
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