LONDON (Reuters):

Oil prices fell yesterday, pressured by fears over the health of the economy of top oil consumer the United States.

U.S. light, sweet crude futures fell $1.95 a barrel to US$92.44 at 1601 GMT. London Brent crude was down $1.33 to US$92.69 a barrel.

Oil had surged more than $4 on Wednesday, following central bank action to ease tight credit conditions in the financial system that could hurt the U.S. economy and depress oil demand.

The move by the U.S. Federal Reserve and its counterparts in Europe, Japan, Canada and Britain boosted stock markets, oil and gold on Wednesday.

But doubts set in yesterday and equity markets fell sharply, focusing on whether the banks' action would do enough to relieve liquidity constraints in the banking sector - a so-called credit crunch - that could hit the global economy.

Oil hit a record US$99.29 on November 21, boosted by the weak dollar and concerns over shrinking crude supplies ahead of winter. But oil has fallen back sharply since then to touch a six-week low last week of US$85.82 a barrel.