LONDON, Jan 19: Oil prices fell sharply on Monday on fresh fears the worst global slowdown in years will undercut energy demand, traders said.

New York’s main contract, light sweet crude for delivery in February, dropped 2.21 dollars to 34.30 dollars a barrel. The February contract expires at the close on Tuesday to be replaced by the March contract.

In London, Brent North Sea crude for March slid 2.16 dollars to 44.41 dollars.

Analysts said that trading volumes were expected to be light with Wall Street markets shut Monday for a public holiday.

Underlying weak global demand for crude “remains a dominant factor” affecting the market, said David Moore, a commodity strategist for the Commonwealth Bank of Australia in Sydney.

Sucden Financial Research analyst Nimit Khamar said the US holiday made for quiet trade, leaving the market “awaiting fresh news and even initiatives from the US as a new president and Congress come into office this week.”—AFP