Oil prices steady amid concerns over Russia, Iraq

Oil prices were little changed today as concerns Russia may stop co-operating with OPEC-led production cuts counteracted speculation…

Oil prices were little changed today as concerns Russia may stop co-operating with OPEC-led production cuts counteracted speculation the US might soon extend attack Iraq, traders said.

US light crude futures rose just three cents higher to $20.98 a barrel in Asia, after settling 52 cents higher in New York yesterday on speculation of an imminent US attack on Baghdad and the first dip this year in US oil inventories.

Week on week, prices were however about 52 cents lower than last Friday's close on the New York Mercantile Exchange.

"The market looks indecisive at the moment," said one New York-based broker. "Any further downside is limited by the situation in Iraq and any probable upside limited by fundamentals and Russia concerns".

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The US Defence Department said yesterday it was seeking to buy 1.5 million barrels of extra jet fuel for its bases in the Middle East, fuelling rumours the White House is poised to expand its military operations to Iraq.

The US military has denied rumours US soldiers are already in Iraq.