Oil prices fall in Asian trade

Oil prices fell in Asian trade today in a market plagued by weak demand despite a sharp price rebound the day before, analysts said.

New York's main futures contract, light sweet crude for delivery in March, fell 78 cents to $38.70 a barrel.

The contract was to expire at the close of trade later today.

Brent North Sea crude for April delivery shed 43 cents to $41.56.

Analysts said yesterday's price rebound did not indicate any increase in global energy demand, which has fallen heavily during the worldwide economic slowdown.

"We may in fact be seeing a drawdown in prices... (The rebound) was more a supply-driven event, not a pickup in demand," said Mark Pervan, senior commodities analyst for ANZ bank, Melbourne.

Pervan said prices rose because of cutbacks in output imposed by the Organisation of Petroleum Exporting Countries (OPEC) rather than increased energy demand.