Oil down in Asia on Japan worries

World oil prices dipped in Asian trade today as worries over Japan's nuclear crisis outweighed unrest in the Middle East, analysts said.

New York's main contract, light sweet crude for delivery in April, lost 37 cents to $97.61 per barrel while Brent North Sea crude for May was down 53 cents to $110.07.

"Uncertainties about radiation causes risk aversion among investors so we're seeing crude falling," said Victor Shum, senior principal for Purvin and Gertz international energy consultants in Singapore.

"The equities market in Japan is also falling as a result of the nuclear crisis, which appears to be worsening."

Japanese shares dipped more than four per cent in early trade today as the yen hit its highest level against the dollar since World War II and workers at the quake-stricken nuclear plant scrambled to avoid an atomic catastrophe.

Japanese military today helicopters dumped water from huge buckets onto the stricken Fukushima nuclear power plant in a bid to douse fuel rods, television images showed.

Traders fear the disaster could affect crude consumption in Japan, the world's third largest economy and the third largest oil-consuming country.

Oil traders were also monitoring the spread of unrest in the Middle East.

Libyan leader Muammar Gaddafi said his forces would fight a "decisive battle" today to recapture rebel-held Misrata, the country's third city, he said on state television.

Libya was producing 1.69 million barrels a day before the unrest, according to the International Energy Agency. Of this 1.2 million were exported, mostly to Europe. Other major customers are China and the United States.