Oil prices dropped further as profit takers moved in after testing highs in the last few sessions.
In London, Brent crude oil futures for February 2011 delivery was trading at US$92.5, down US$1 on the day.
Traders are slightly worried that crude’s advance, it rose 8 percent in December 2010 alone, means that prices may have risen too far and too fast as a result of optimism about the global economic recovery.
Analysts believe the start of profit taking during late trading yesterday heralds concerns that high oil prices could hold back the economic recovery.
Oil prices settled at a 2-year high on Monday after upbeat US manufacturing data and a strong finish on Wall Street.
On Tuesday however Wall Street closed mixed, with the Nasdaq and the S&P finishing lower and the Dow finishing higher and there were no major cues to take oil higher.