LONDON, Jan 11: World oil prices fell back on Friday despite news of more unrest in key producer Nigeria, with worries about the US economy dominating trading, analysts said.

New York’s main contract, light sweet crude for delivery in February, shed 51 cents to $93.20 per barrel.

Brent North Sea crude for February tumbled by $1.11 to $91.11 per barrel.

Crude prices have slumped by as much as five dollars this week amid widespread fears that slowing economic growth in the United States could dampen demand from the world’s number one oil consumer.

“Persistent worries about a potential recession in the US and a slowdown in growth rates put downward pressure on the market,” said Sucden analyst Andrey Kryuchenkov.

“Investors fear that a slowdown in the US could spread to the broader market and become a drag on the global economy, consequently denting demand for energy.”

Earlier on Friday, prices had edged higher amid ongoing geopolitical tensions and hopes that the US Federal Reserve will cut rates aggressively in a bid to boost the ailing American economy.

Traders took that as a clear signal the Fed was set to cut US borrowing costs, probably by half a percentage point, later this month.

Despite recent heavy price falls, traders warned that there could be another run at $100 per barrel due to lingering geopolitical concerns elsewhere.

Nigeria, Africa's biggest oil producer, faces problems from rebel activity that has caused the country to shutdown some oil installations.

Prices also fell this week after the US Department of Energy said US gasoline and distillate stocks rose last week by a much larger-than-expected 5.3 million barrels and 1.5 million barrels, respectively.

Traders' thoughts are now turning to a production meeting of the Opec oil producers’ grouping in Vienna next month.

Ministers from the Organisation of Petroleum Exporting Countries, which accounts for about 40 per cent of global crude supplies, will convene in the Austrian capital on February 1.

Top of their agenda will be recent record-breaking oil prices. Last week, New York oil hit an historic $100.09 per barrel and Brent surged to an all-time peak at $98.50.—AFP