Oil prices mixed, New York crude falls under $85

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New York oil prices plunged below $85 on Tuesday with markets increasingly worried about a possible return to recession that would dampen energy demand, but Brent crude rallied after recent losses, analysts said.

New York's main contract, light sweet crude for delivery in October, shed $1.89 to $84.56 a barrel.

Brent North Sea crude climbed 84 cents to $110.92 in London, with analysts suggesting the recovery was because the contract had been oversold in recent days.

The eurozone debt crisis and weak economic data out of the United States pointing to a possible return to recession were all weighing on oil prices on Tuesday.

Andrey Kryuchenkov, commodities analyst at financial group VTB Capital, said "fears of slowing growth and consequently weaker crude demand" were pressuring the oil market.

"Overall, this week is likely to be dominated by macro headlines and the overall risk sentiment," he added.

© 2011 AFP

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