Oil steadied near $90 today as news of US government financial rescue package failed to allay concerns of a possible recession in the world's largest economy.
US President George W Bush called for package of tax cuts and other measures of around $140 billion to shore up the US economy, battered by the sub-prime crisis and credit crunch.
US crude dipped seven cents to $90.06 a barrel this evening. London Brent crude gained 39 cents to $89.14.
Prices remain at high levels but have shed $10 since striking a record in New York of $100.09 per barrel earlier this month.
Some traders have predicted that prices will drop a further $10 or so, with Tony Nunan, of Mitsubishi's international petroleum business in Tokyo, saying that, in a 'worst-case scenario', oil futures could sink as low as $69.
On Wednesday, the International Energy Agency kept its 2008 forecast for oil demand unchanged despite growing expectations of a US recession.
