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SINGAPORE - Oil prices steadied yesterday after last week's rally, as dealers weighed risks to supplies from Nigeria and the Middle East at a time of peak summer petrol demand in the United States.
London Brent crude for August delivery, currently seen as more representative of the global market, lost early gains to slip US21c to US$71.26 a barrel, after rising US11c on Friday when it hit a 10-month high.
US crude for July traded US8c lower at US$67.92 after climbing 5 per cent last week, while US gasoline futures continued to rise to lead oil market gains after data last week showed stockpiles of motor fuel in the United States unexpectedly failed to build.
"This week's inventory data will be key again, unless something surprising comes out of Iran," said Sano Keiichi of Sumitomo Corp.
Iran's chief nuclear negotiator and the European Union's foreign policy chief may meet again in the next few days for talks on the disputed atomic programme of the world's fourth largest oil exporter, an issue that has kept prices bubbling this year.
Dealers also weighed the potential of violence in Israel widening to draw in neighbouring Middle East states, which pump a quarter of the world's oil. Israel said it cut fuel supplies to the Gaza Strip, as it hopes to isolate Gaza after Hamas seized control of the territory.
US crude reached a record US$78.40 nearly a year ago on fears that fighting between Israel and Lebanese Hizbollah guerrillas could spread to Middle East oil producers.
- REUTERS
