Economic slump has also lead to a slump in the demand for crude oil throughout the world.

Oil in New York and Asia fell to around $37 a barrel. Light, sweet crude for March delivery fell 37 cents to $37.12 a barrel by afternoon in Singapore on the New York Mercantile Exchange.

U. S. crude for March delivery fell to $37.00 a barrel whereas London Brent crude for April rose 62 cents to $43.90.

"The economic and inventory data paint a bleak picture for oil demand," said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore. "Since the beginning of the year, the outlook has worsened."

However, OPEC's output cuts have helped in deteriorating the prices. Leaders of the Organization of Petroleum Exporting Countries have said they may add to 4.2 million barrels a day of cuts announced since September at a meeting next month.