WORLD OIL PRICES DIVERGE

Crude oil prices diverged in cautious deals today, as traders eyed forecasts of warmer US weather and rising Libyan production, analysts said. New York's main contract, West Texas Intermediate (WTI) for delivery in March, rose 39 cents to USD 100.27 per barrel, shedding some of its earlier gains. Elsewhere, London's Brent North Sea crude for March delivery dropped 54 cents to USD 109.03 per barrel in late afternoon deals. "Brent prices are retreating on news that output from Libya is increasing, while WTI is under pressure on forecasts for temperatures in the US to warm after this week," said Addison Armstrong at US-based Tradition Energy. Oil market sentiment meanwhile remained downbeat after recent poor data in the United States, which is the top crude consumer. The US economy added only 113,000 jobs in January, after a paltry 75,000 in December, according to the US Labor Department's survey of business establishments. Analysts had expected 175,000. But a separate household survey showed the unemployment rate dropped for the third month running, to 6.6 per cent from 6.7 per cent in December. The labour force participation rate improved, though still at a historically low level, to 63.0 per cent. "Looking at the jobs data and how the equity and bond markets have responded ... some of the investors were actually focused on the bright spots like the higher participation rate," Desmond Chua, market analyst at CMC markets in Singapore, told AFP. He said that the jobs data renewed optimism that the Federal Reserve might slow down the timetable for winding down its economic stimulus programme. All eyes will be on Janet Yellen's first official appearance as Federal Reserve boss in the US Congress later on Tuesday. "Investors will watch for her take on the economy, and whether tapering is sustainable at the current pace of job creation," Chua said.