March 09, 2007	Friday	Safar 19, 1428

LONDON, March 8: World oil prices drifted lower on Thursday as traders consolidated gains made on the back of tumbling energy stockpiles in major consumer the United States.

New York’s main oil futures contract, light sweet crude for delivery in April, fell 22 cents to $61.60 per barrel in pit trading.

The price of Brent North Sea crude for April delivery eased 39 cents to $62.11 per barrel in electronic deals. Earlier on Thursday Brent had reached $62.84 -- the highest level since December 26 last year.

Crude futures had started on Thursday a little firmer, “extending gains from the previous session,” said Michael Davies, an analyst at the Sucden brokerage in London.

Oil prices had leapt by more than a dollar on Wednesday after the US Department of Energy (DoE) revealed that American stocks of crude oil, distillates and gasoline (petrol) tumbled in the week to March 2.

Davies added: “The market remains tight and oil futures seemed to have recovered, following last week's sell off in commodities, resulting from a major correction in global equities markets affecting investors worldwide.”

Stabilising equity markets -- after the turmoil of the past week -- may also have helped oil prices move higher on the view that there is now less of a threat to economic growth, analysts said.

Crude prices had slumped on Monday as traders sought to limit their investment exposure.

“The market is holding steady at the $61 to 62 level,” said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

He added: “It has recovered primarily driven by the bullish US inventories report and also the earlier recovery in the global stock markets.”—AFP