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LONDON - Oil fell below US$61 a barrel in thin trade today as mild weather in the United States offset worries over Iran's nuclear programme.
Trading floors in New York were closed to honour the memory of former US President Gerald Ford, while oil markets in Japan and Singapore were also shut for a holiday.
"We don't expect to see any dramatic moves this week, as many players are away, but markets should be back in full swing by next week," Edward Meir of Man Financial said in a research note.
US crude slipped 17 cents at US$60.88 by 1840 GMT in Globex electronic trading, reversing Friday's 52-cent gain.
London Brent crude prices fell 26 cents to US$60.60.
Oil prices were kept subdued by continued mild weather in the US Northeast, the world's top heating oil market.
Weather forecaster DTN Meteorlogix predicted temperatures in the US Northeast would be as high as 8C above normal this week.
Many forecasters predict warmer-than-average temperatures will linger until next week.
US oil prices on Friday settled the year at US$61.05 a barrel, one cent higher than the final day of trading in 2005. Nymex has fallen more than US$17 since its record of US$78.40 in July, and averaged US$66.24 in 2006.
Prices found support from Iran's resistance to a UN resolution that imposes trade sanctions on the country for its uranium enrichment work.
President Mahmoud Ahmadinejad said on Tuesday that Iran would not retreat from its right to nuclear technology and that the UN resolution was "invalid."
Iran's oil minister last week said the world's fourth largest crude producer would use any weapon, including oil exports, to defend itself.
"We continue to see the dispute over Iran's nuclear ambitions as a key bullish factor for oil in the year ahead," said Kevin Norrish of Barclays Capital.
Iran's rhetoric helped offset bearish news from Russia, which reached a last-minute agreement on Monday with Belarus over gas prices. The deal helped avert a possible supply disruption for customers in Europe.
- REUTERS
