LONDON, Feb 12: Oil prices eased on Tuesday as the market kept watch on the outlook for the slowing US economy and its impact on crude demand, while tracking Venezuela’s threat to cut US supplies, dealers said.New York’s main contract, light sweet crude for delivery in March, lost five cents to $93.54 a barrel.

Brent North Sea crude for March delivery eased nine cents to $93.44.

Prices had soared Monday on threats by Venezuelan President Hugo Chavez to cut oil sales to the United States.

“Market participants do not believe in Chavez’s rhetoric and so we see prices adjusting downwards” on Tuesday, said Victor Shum, senior principal at Purvin and Gertz international energy consultants.

Fears that the US economy could be entering a recession, causing in turn a drop in energy demand, have spooked oil markets recently.

Prices had slumped by about 12 per cent since the price of New York crude hit an all-time high of $100.09 on January 3 but Venezuela’s threat over the weekend provided new support.—AFP