Oil drops below US$89 a barrel as concern over US outlook drives down stock markets

Oil prices fell sharply Monday as fears over the U.S. economy drove down stock markets in Asia and Europe.

Further pressure came from concerns OPEC won't raise crude production levels.

Light, sweet crude for February delivery fell US$1.63 to US$88.94 a barrel in electronic trading on the New York Mercantile Exchange by the afternoon in Europe. The contract rose 44 cents to settle at US$90.57 a barrel on Friday.

In London, Brent crude futures fell US$ 1.33 to US$87.90 a barrel on the ICE Futures exchange.

Oil prices have now retreated more than US$10 from a record above US$100 a barrel early this year on worries a flagging U.S. economy …