Oil prices hold firm

LONDON: Oil prices rose slightly on Tuesday after losses the previous day, but gains were capped by lingering demand concerns and sliding equity markets, analysts said.

Brent North Sea crude for April delivery added 52 cents to 41.51 dollars per barrel.
New York's main futures contract, light sweet crude for delivery in April, gained 45 cents to 38.89 dollars a barrel.

"Demand concerns remain prevalent on the energy markets, so the upside continues to be limited and we could be in for more sideways trading," said VTB Capital analyst Andrey Kryuchenkov.

Asian and European markets spiralled lower Tuesday after Wall Street had struck a near 12-year low overnight, as investors were unconvinced by Washington's bank rescue strategy, analysts said.

Tokyo shares dived to within striking distance of a 26-year trough after the rout in New York as investor worries grew over the banking sector. However, US stocks opened higher Tuesday on bargain hunting.

Crude futures had fallen Monday in tandem with global stocks amid gathering economic gloom and despite hints that oil cartel OPEC could cut output next month in a bid to boost prices.

"Oil prices weakened further yesterday due to renewed concerns over the health of the global economy," said analysts at energy consultancy John Hall Associates.

"Contracts moved downwards in line with equities -- a factor often cited as a secondary price driver -- given that they are a barometer of economic sentiment."