World oil prices fell in Asian trade in a market fretting over underlying credit worries in the US, New York's main oil futures contract, light sweet crude for delivery in October, was 29 cents lower at 70.80 dollars per barrel.
Trading was likely to be relatively subdued with the London market closed for a holiday, they said.
At 10:59 am (0829 IST) New York's main oil futures contract, light sweet crude for delivery in October, was 29 cents lower at 70.80 dollars per barrel after rising 1.26 dollars to 71.09 dollars per barrel in late US trades on Friday.
Brent North Sea crude for October delivery was 32 cents lower at 70.30 dollars per barrel.
"I'm not sure today's move is very important," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
He said that most traders think the market's short to medium-term fundamentals are fairly strong but there are underlying worries over the US credit crunch.
Oil markets have been rattled in recent weeks by a lingering US housing crisis and fears that it could crimp growth in the world's biggest oil-consuming nation.
"It'll affect oil demand somewhere along the way," perhaps in 2008, Nunan said.
In the shorter term, crude prices will stabilise or possibly rise on a general tightening of supply and demand, he said.
Petrol and distillate stocks are already relatively low in the United States, and big drawdowns of crude are expected moving into the fourth quarter, he said. - DDNEWS
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