Oil in narrow trading range in Asia

Oil traded in a narrow price range in Asia on Monday, with the market affected by weak global demand and worries over OPEC production cuts, analysts said.

New York's main contract, light sweet crude for February delivery, fell 31 cents to USD 36.20 a barrel on the New York Mercantile Exchange.



Brent North Sea crude for March delivery was down 47 cents to 46.10.



Underlying weak global demand for crude "remains a dominant factor" affecting the market, said David Moore, a commodity strategist for the Commonwealth Bank of Australia in

Sydney.



He said New York's February contract was trading in a "very narrow range" ahead of its expiry later this week, and March contract prices of above USD 42 were more indicative of the market's current situation.



Last week both the Organisation of the Petroleum Exporting Countries (OPEC) cartel and the International Energy Agency, energy policy adviser to major industrialised countries, lowered their demand forecasts for this year.



OPEC will consider further cuts to oil production if prices continue to fall, Algerian Energy Minister Chakib

Khelil said Saturday.



Another cartel member, Venezuela, said at the weekend that it is prepared to reduce its oil production in a bid to boost prices.

Sensex opens marginally higher on firm Asian trendSensex opens marginally higher on firm Asian trend

The Bombay Stock Exchange benchmark Sensex opened marginally higher by adding 58 points in early trade on Monday on investors buying in line with firming trends in Asian markets.

The 30-share index, which had gained 276.85 points in the previous session, added 58.19 points at 9,381.78 in the first five minutes of trading.



Similarly, the wide-based National Stock Exchange's Nifty rose by 15.90 points to 2,844.35.



Marketmen said buying activity was supported by reports of Hong Kong share prices opening 1.8 per cent higher on Monday, with sentiment driven by Wall Street's end-of-week gains and optimism ahead of Barack Obama's resuming office.

New set of measures to help banks New set of measures to help banks

The government has announced a second package of measures to support the banking system.

The long list of measures includes a scheme to offer insurance against banks losing more money from the toxic debt that started the credit crunch.

The banks will have to pay for the insurance, but the government says it does not expect to be paid in shares.

Prime Minister Gordon Brown condemned the banks that had made losses from "irresponsible" lending.

Risky assets

Under the insurance scheme, banks will agree with the government the amount they expect to lose from particular debt.

The Treasury will then sell insurance against about 90% of the institutions' additional losses from the debt. The government has announced a second package of measures to support the banking system.

The long list of measures includes a scheme to offer insurance against banks losing more money from the toxic debt that started the credit crunch.

The banks will have to pay for the insurance, but the government says it does not expect to be paid in shares.

Prime Minister Gordon Brown condemned the banks that had made losses from "irresponsible" lending.

Risky assets

Under the insurance scheme, banks will agree with the government the amount they expect to lose from particular debt.

The Treasury will then sell insurance against about 90% of the institutions' additional losses from the debt. The government has announced a second package of measures to support the banking system.

The long list of measures includes a scheme to offer insurance against banks losing more money from the toxic debt that started the credit crunch.

The banks will have to pay for the insurance, but the government says it does not expect to be paid in shares.

Prime Minister Gordon Brown condemned the banks that had made losses from "irresponsible" lending.

Risky assets

Under the insurance scheme, banks will agree with the government the amount they expect to lose from particular debt.

The Treasury will then sell insurance against about 90% of the institutions' additional losses from the debt.
The government describes the assets involved as being those "most affected by the current economic conditions".

Most of the debt involved is very difficult to value because the market in it has collapsed.

The questionable value of the assets has meant that banks do not know how much money they are in a position to lend.

The government hopes that by insuring them against additional losses, it will encourage the banks to resume normal lending to businesses and individuals.

Chancellor Alistair Darling told the BBC that banks taking out the insurance would have to make "very specific legally binding agreements to lend more money".

Previous rescues

There have also been changes to the terms of previous bank rescues.

Northern Rock has said that it is to be given longer to repay its loans from the government.