Oil prices held close to its recent high yesterday as traders remained on alert for signs on the timing of any US-led attack on Iraq, although profit-taking by some traders weighed on prices slightly.
Brent North Sea crude for October delivery stood at $28.24 (€28.81) a barrel against $28.29 dollars at the previous close.
Brent prices had rallied to the highest level for almost a year on Friday, approaching $29 a barrel, on concerns that an attack on Baghdad is drawing closer.
In New York, the light sweet crude October contract slipped 18 cents in early deals to $29.43 a barrel.
"The message from the United States and Britain over the weekend seemed to be clear," said Mr Lawrence Eagles, analyst at brokers GNI. "Saddam is developing nuclear weapons and has to be stopped."
Mr Eagles said an attack on Iraq in itself would not have a huge impact on the oil market because any military action would probably be over very quickly and would affect less than one million barrels per day of exports. Of greater concern was what the reaction of surrounding Gulf oil producers might be.
"If those countries should decide to impose an oil embargo against the United States if it attacks Iraq, then the oil price could rise sharply. . . it is the extent of anti-US feeling among the people in the region that creates a huge uncertainty for the oil market," he wrote. - (AFP)
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