Oil prices more likely to fall than to rise

Oil prices are holding steady at around $40 a barrel despite further falls in the world's main stock indices. But given the relentless flow of bad economic news and bearish demand forecasts, oil's chances of a recovery remain remote. On Monday, the Dow Jones Industrial Average closed at its lowest level for 12 years, undermined by growing concerns about the effectiveness of the US' economic stimulus and bank-rescue strategy. Japanese shares were close to a 26-year low and European stocks are also continuing to fall.