Oil down as Italy polls spark new eurozone fears

A political deadlock loomed in Italy as it appeared elections failed to produce a clear winner

Oil prices were down in Asia today after inconclusive Italian national elections threatened instability in the country and disrupt the eurozone's recovery, analysts said.

New York's main contract, light sweet crude for delivery in April dropped 63 cents to $92.48 a barrel and Brent North Sea crude for delivery in April shed 49 cents to $113.95.

"The cloudy Italian elections sent shudders across global markets ... Causing panic it might derail the eurozone's nascent recovery," IG Markets Singapore said in a market commentary.

A political deadlock loomed in Italy as it appeared Sunday's elections failed had to produce a clear winner.

Polls show that while the leftists won the lower house, the party run by former prime minister Silvio Berlusconi had more seats in the upper house.

A majority in both chambers of parliament is required to form a government, leaving Italy in a state of limbo.

"This raised fears that much-needed austerity measures for Italy could stall due to political infighting," the IG Markets report said.