US light crude for May delivery was down US$1.06 at US$99.80 a barrel at 00.36 GMT on March 25. It had settled down 98 cents at US$100.86.

London Brent crude fell US$1.01 to US$98.85 a barrel.

Analysts said a slowdown in the US economy, combined with a seasonal fall in demand in the second quarter, were likely to keep oil prices below the $100 mark in coming weeks.

Oil has dropped more than US$10 from last week's record high of US$111.80 as investors fled commodities on a view that gains had been overdone, giving a lift to the beleaguered dollar in the process.

A recovery in the US dollar from recent lows against the euro was pressuring the nominal price of virtually all dollar-denominated commodities, including crude.

Uncertainty over world energy demand growth has kept OPEC from raising production to curb high oil prices, despite calls from consumer nations for additional output.