Oil prices edged lower yesterday after three days of gains as dealers marked time ahead of US Secretary of State Colin Powell's bid to convince UN powers next week of the need to use military force to disarm Iraq.
US light crude slid 34 cents to $33.51 a barrel, but held gains of more than $2 on the week, while London Brent fell 11 cents to $31.10.
Low global oil stocks and reduced oil exports from strike-torn Venezuela have combined with war fears to boost oil prices more than 30 per cent since late November.
Analysts see little relief from oil prices, near two-year highs, as the White House positions itself for war against key exporter Iraq, which holds the world's second largest oil reserves behind Saudi Arabia.
Mr Powell is due to present evidence on Wednesday to the UN Security Council to show that Baghdad is pursuing programmes to build biological, chemical or even nuclear weapons in violation of sanctions.
Washington and its staunchest ally, London, have been massing a huge military force in the Gulf, and President Bush has vowed to disarm President Saddam Hussein, with or without UN backing.
Fimat Banque's Mr Mark Head said yesterday oil dealers were taking some profits ahead of any fresh indications of impending war, with selling pegged to Venezuelan figures showing a recovery in crude oil production. - (Reuters)
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