World oil prices retreated in Asian trade today after topping a two-month high above $49 overnight on concerns over weak global energy demand amid the economic downturn, analysts said.
New York's main futures contract, light sweet crude for delivery in April, fell 65 cents to $48.51 a barrel in morning trade.
It had jumped $1.81 in New York trade yesterday to close at $49.16 after hitting $49.82, its highest level since January 6.
Brent North Sea crude for May delivery was down 47 cents to $47.77. The April contract expired Monday at $43.98.
"Demand is still the key. Yet we still have to see the demand for oil and natural gas increase before we get too excited about a change in trend," said Phil Flynn of Alaron Trading in the United States.
"Oil demand in the US is weak and we need to see that change... If oil closes above $50 a barrel we may need to start getting a bit bullish."
The market was also waiting for the release later today of the weekly US energy inventories report, which is closely watched because the United States is the world's biggest oil consumer.