Oil down on demand concerns from quake-hit Japan

New York's main contract, light sweet crude for delivery in April, dipped $1.33 to $99.83 per barrel in the afternoon.

Brent North Sea crude for April delivery lost $1.81 to $112.03.

"In the short term, there might be some demand disruptions due to the Japanese earthquake, but there will be an increase in fuel oil imports due to the lost nuclear power capacity, which will be supportive of fuel oil prices in the near term," said Chen Xin Yi, commodities analyst for Barclays Capital.

Crude futures fell immediately last week in reaction to Friday's massive 8.9-magnitude earthquake off Japan, unleashing a tsunami that battered the country's northeast coast and stretched across the Pacific.

Traders worry the disaster will affect energy consumption in Japan, the world's third largest economy.

Asian stock markets also fell Monday, with Tokyo tumbling ending 6.18 per cent lower.

The yen hit a four-month high after the Japanese central bank pumped a record amount of money into financial markets while auto makers were hammered after being forced to halt production while nuclear plant operator TEPCO slumped 23.57 per cent.

Meanwhile, investors are also keeping a nervous eye on the unrest in oil-producing Libya where rebels continue to battle forces loyal to leader Moamer Kadhafi.

Qatar's Energy Minister Mohammed Saleh al-Sada said on Sunday that world oil output was sufficient despite the unrest in Libya, which had slashed the country's crude production.

Libya was producing 1.69 million barrels per day (bpd) before the unrest, according to the International Energy Agency. Of this 1.2 million bpd was exported, mostly to Europe but with China and the United States also major customers.

Oil giant Total said on Friday that the unrest has cut Libya's output by 1.4 million bpd to below 300,000. The price of oil on world markets has soared since the mid-February outbreak of the anti-government protests across the Middle East and North Africa.