SINGAPORE: Oil prices fell in Asian trade Tuesday on concerns debt-ridden Greece might fail to secure a second bailout and expectations of weaker US energy demand, analysts said.
New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in March, was down seven cents to $96.84 a barrel in the afternoon and Brent North Sea crude for March fell three cents to $115.90.
"The situation in Greece is putting downward pressure on oil prices. It remains to be seen if the EU will grant Greece a second bailout," said Victor Shum, senior principal at Purvin and Gertz energy consultancy in Singapore.
"There is also expectations of a rise in US crude inventories, indicating weakened demand despite other bullish factors," he told AFP.
Athens is in the third week of tough negotiations with senior auditors from the European Union, IMF and the European Central Bank to receive new loan funds under a 130-billion-euro ($170-billion) eurozone rescue deal.
A deal must be struck by March to prevent Greece defaulting on its debt.
The auditors have demanded additional austerity reforms that the coalition of three parties supporting the government of Prime Minister Lucas Papademos have hesitated to approve.
Prices had risen earlier Tuesday due to increased demand for heating fuel driven by a cold snap in Europe, which has left more than 360 people dead.
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