LONDON, Jan 22: World oil prices won back some of the day’s heavy losses on Tuesday after news of a surprise US rate cut, and amid global stock market chaos and mounting economic concerns.

New York’s main contract, light sweet crude for delivery in February, shed as much as three and a half dollars on Tuesday. The contract, which expires at the close, later stood at $89.40 per barrel, down $1.17.

Brent North Sea crude for March delivery reversed earlier losses to trade up 48 cents at $88.01 dollars per barrel.

Analysts warned that oil prices remained under pressure because of growing fears that the emergency Fed measure could mean that US economic problems are far more deep-rooted than previously thought.

“The price of oil can come down dramatically and have one of the most significant corrections in years,” said Alaron trading analyst Phil Flynn.

Prices remain at high levels but have shed more than 10pc since striking a record in New York of $100.09 in early January. —AFP