January 30, 2007	Tuesday	Muharram 10, 1428

LONDON, Jan 29: World oil prices eased on Monday but held close to $55 per barrel as traders eyed cold weather in the United States and geopolitical developments in crude producing nations Iran and Nigeria.

In London, the price of Brent North Sea crude for March delivery shed 80 cents to $54.49 per barrel in electronic deals.

New York's main oil futures contract, light sweet crude for delivery in March, slipped 62 cents to $454.80 per barrel in floor trading.

“Oil prices have started the week under pressure. Nevertheless-the upward price trend is still intact,” said Barclays Capital analyst Kevin Norrish.

“Cold weather in the US continues to be a positive factor in setting market sentiment with temperatures in the northeast heating oil region expected to stay below normal for at least the next two weeks.

Geopolitical factors were also moving to the fore again with recent developments in Iran and Nigeria, he added.

Crude futures had risen strongly last week as colder temperatures gripped the northern hemisphere, following what had been a relatively mild winter.

Oil prices have hovered around the $55 mark for around one week after dunking beneath $50 per barrel in New York two weeks ago amid a healthy supply picture.

Meanwhile, traders tracked the news flow on Iran, which is a key member of the Organisation of the Petroleum Exporting Countries.

Over the weekend, Iran gave conflicting signals on its disputed nuclear work with the Islamic republic's atomic energy agency denying Tehran had started to install 3,000 centrifuges to enrich uranium.

The UN Security Council has imposed sanctions to pressure Iran to stop uranium enrichment, which makes fuel for civilian nuclear reactors but also the explosive core of atom bombs.

Tehran says its nuclear programme is a peaceful effort to generate electricity, but the US claims that Iran is hiding work on developing atomic weapons.

Events in Nigeria -- Africa's biggest crude producer -- also lent prices some support, analysts said.

“Geopolitical tensions seem to have once again caught the market's attention amid heightened violence in Nigeria, that has once again increased concern about more supply disruptions,” said Sucden analyst Michael Davies. —AFP