Oil prices fell to near $99 a barrel Friday in Asia as encouraging news about the U.S. economy was tempered by European demands for Greece to make further spending cuts before getting a new bailout.

Benchmark crude for March delivery was down 61 cents at $99.23 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.13 to settle at $99.84 on Thursday.

A year after Egypt overthrew Hosni Mubarak, the poor state of the once-growing economy of the Arab world's most populous nation poses a threat to its restive transition to democracy.

With an estimated growth rate of one to two percent -- compared with between five and seven percent in past years -- the government is looking to the International Monetary Fund and donors to fend off a possible social explosion.

The Lebanese economy is at risk from internal political uncertainty, spiraling violence in neighboring Syria and the Eurozone crisis, the International Monetary Fund has warned.

These and other vulnerabilities including high government debt and an ongoing current account deficit saw gross domestic product (GDP) growth sink to an estimated 1.5 percent last year from 7.0 percent in 2010, said the IMF.

The European Central Bank held its key interest rates steady, as expected on Thursday, leaving Eurozone borrowing costs at historic low levels after cutting rates twice in recent months.

The ECB's policy-setting governing council voted to leave the rate for its main refinancing operations unchanged at 1.0 percent at its regular monthly meeting here.

Economic weakness in Europe and the United States and higher oil prices led OPEC to cut its 2012 forecast for growth in global oil demand on Thursday.

The Organization of Petroleum Exporting Countries now expects daily demand this year of 88.76 million barrels per day, down from its forecast a month ago of 88.90 million bpd.

Renault stressed on Thursday that the opening of a giant factory in Morocco to build low-cost cars is not a sign that it is abandoning production at home in France.

"It isn't something that is being done to the detriment of France," chief executive Carlos Ghosn said on French RTL radio ahead of an official opening ceremony later on Thursday for the plant outside Tangiers.

Abu Dhabi-based Etihad Airways on Thursday posted a net profit of $14 million for 2011, exceeding its goal of breaking even for the first time ever, a statement said.

The national carrier of the United Arab Emirates said its revenues were up 36 percent in 2011 to $4.1 billion, with net profit touching $14 million.

Chancellor Angela Merkel's party is at its most popular since her government was elected in 2009 despite the crisis, which a majority of Germans believe can be overcome, polls showed Wednesday.

Merkel's center-right Christian Democrats (CDU) are polling at 38 percent, a Forsa survey for Stern magazine showed, the highest level since August 2009, a month before the election which swept her to a second term in power.

Greece reached the hour of decision on Wednesday over more budget cuts demanded by the EU and IMF and a debt deal to obtain a second rescue and close a key chapter in the Eurozone crisis.

Saudi Arabia has pledged to ensure a stable supply of oil to South Korea, which is under pressure from the United States to reduce purchases from Iran, a report said on Wednesday.

The assurances came as South Korea's President Lee Myung-Bak held talks in Saudi Arabia on Tuesday with Saudi Oil Minister Ali al-Naimi and the head of Saudi state oil giant Aramco, Khalid al-Faleh.