LONDON, Feb 11: Oil prices held steady on Tuesday as the market continued to weigh the prospects for war in Iraq ahead of a closely watched weekly report on US oil stock levels later in the week.

The price of benchmark Brent North Sea crude oil for March delivery edged up to $31.75 here from $31.70 at the close of trading the previous session.

In New York, the reference light sweet crude March contract fell 64 cents to $34.48 a barrel on Monday.

“Prices are slightly firmer... and I think the market remains well supported, despite Monday’s big downside move,” said Williams de Broe analyst Andrew Whittock.

“Dealers are still concerned that an attack on Iraq could take place within weeks,” he said.

Oil prices were hit on Monday after the rift between the United States and several of its European allies deepened, prompting speculation that a war could be delayed, which in turn led to profit taking following recent strong gains.

GNI-Man Financial analyst Lawrence Eagles said from the market’s perspective the main issue was whether the United States was likely to regard recent developments as a reason to give the weapons inspectors more time, or whether it would go it alone regardless and attack Iraq.

“A US-led attack still seems the most likely outcome unless it can see a clear path to a unified stance within the United Nations in the coming days,” he argued.—AFP