September 12, 2003	Friday	Rajab 14, 1424

LONDON, Sept 11: Oil prices were steady here on Thursday with concerns about the low level of US crude stock levels propping up the market, analysts said.

The price of benchmark Brent North Sea crude oil for October delivery was two cents lower at $27.50 per barrel in late trading.

New York’s reference light sweet crude October contract was down five cents at $29.30 in early deals.

The market was still garnering some support from weekly US government figures released a day earlier showing a sharp fall in stocks of crude oil but a rise in those of gasoline and distillate fuel, analysts said.

“You still have the underlying support by the fact that inventory levels remain low,” said Commerzbank analyst David Thomas.

“Despite the build yesterday, heating oil stocks are still 20 per cent down year-on-year,” he added. The market was also keeping a watch on unrest among oil workers in Nigeria and Hurricane Isabel.

“Near term concerns to the market over a strike threat in Nigeria and the threat posed by Hurricane Isabel to refinery production in St. Croix have eased somewhat,” said Barclays Capital analyst Kevin Norrish.

“However both have the potential to resurface, particularly Isabel which could end up threatening Gulf oil and gas production late next week,” he warned.

Nigerian white-collar workers for the Anglo-Dutch oil giant Shell returned to work on Thursday after suspending a two-week strike a day earlier to allow for further talks, union officials said.—AFP