Oil prices dip on easing of concerns over Venezuela strike 

www.channelnewsasia.com First created : 23 January 2003 0832 hrs (SST) 0032 hrs (GMT) Last modified : 23 January 2003 0832 hrs (SST) 0032 hrs (GMT)

Oil prices eased in New York dealings on Wednesday on signs of progress in efforts to end a strike by Venezuela oil tanker pilots, but fears of a war in Iraq kept market nerves taught.

However traders warned against reading too much into the market retreat, especially as a cold front hit the northeastern United States.Advertisement Moreover fears over a war in Iraq still haunted the market.

US leaders have expressed frustration at European-led opposition to a military strike against Iraq as the top US general said the United States can sustain a major force in the Gulf for several months if needed.

New York's light sweet crude March-dated contracts fell 34 cents to US$32.85 a barrel.

Earlier in London, the price of benchmark Brent North Sea crude oil for March delivery tumbled 37 cents to US$30.37 a barrel.

On Wednesday, the Algerian oil minister has warned that the Organisation of Petroleum Exporting Countries would not be able to compensate an expected shortfall of supplies of around five million barrels per day in the case of a war on Iraq before the Venezuelan strike ends.