December 28, 2006	Thursday	Zilhaj 06, 1427

LONDON, Dec 27: World oil prices extended losses on Wednesday as mild weather in the US led to expectations of a drop in US demand for heating oil, traders said. New York’s main contract, light sweet crude for delivery in February, slid 60 cents to $60.50 per barrel in pit deals.

In London, Brent North Sea crude for February delivery fell 51 cents to $60.59 per barrel in electronic trading.Crude oil futures had already closed down more than a dollar on Tuesday as the market focused on mild US winter temperatures.

“It’s still the weather,” that’s causing prices to drop, said Calyon analyst Mike Wittner.

The heavy fall in prices since Tuesday has occurred despite the United Nations Security Council voting at the weekend to impose sanctions against major oil producer Iran over development of its nuclear energy programme.

Before the UN decision, some analysts had argued that Iran could cut its oil exports in response to sanctions. However, many market watchers believe, Iran would be unlikely to cut off its oil exports which are its major source of revenue.

The market was also keeping a close watch over Nigeria.—AFP