Singapore: Following a bearish report of Standard and Poor on the United States oil fell in Asian trade on Tuesday.

New York's main contract, light sweet crude for delivery in May dipped 17 cents to USD 106.95 a barrel, while Brent North Sea crude for June eased one cent to USD 121.60.

Victor Shum, a Singapore-based analyst at Purvin and Gertz international energy consultancy, said oil prices were weighed down by ratings agency Standard and Poor's decision to cut its outlook on US sovereign debt to "negative".

However, analysts said that unrest sweeping the Arab world and its impact on oil supplies in the crude-producing region will keep forcing prices higher.

"Given the geopolitical risks involving oil, I don't expect a sharp correction in prices," he said.

"The supply disruption in Libya is real as are the threats of further uprising in the other parts of oil-producing Middle East and North Africa."

Unrest in the Arab world has already toppled the leaders of Tunisia and Egypt and has spread to such countries as Yemen and Syria.