World oil prices recovered in Asian trade Tuesday as investors bought on the dip amid Syria-Turkey tensions, but bad news on the regional and global economy fostered an atmosphere of caution.
New York's main contract, light sweet crude for delivery in November, was up 92 cents to $90.25 a barrel in morning trade, while Brent North Sea crude also for November advanced 91 cents to $112.73.
Both futures contracts were down in overnight trade.
Analysts said trading sentiment was being clouded by a gloomy economic outlook after the IMF and World Bank slashed their 2012 growth forecasts.
The International Monetary Fund cut its forecast for Chinese economic growth this year to 7.8 percent, while the World Bank said it expected the world's second-largest economy to grow at a slower-than-expected 7.7 percent.
Crude oil prices are "facing plenty of downward pressure as China growth expectations continue to be pared back", said Justin Harper, an analyst with IG Markets Singapore.
He said forecasts of slower growth have left "a thick black cloud of uncertainty" over a region still outpacing the rest of the world economy.
Oil prices however were being supported by concerns over an escalation of violence in the Middle East as Turkey and Syria engage each other in artillery exchanges across their border, Harper said.
Phillip Futures said in a report that "China's economic growth and demand for petroleum have been key supports for oil prices since global energy demand was hit by recession after the financial crisis in 2008".
(Content credit: AFP)
reporter
Park Sae-jin
swatchsjp@ajunews.com