March 28, 2007	Wednesday	Rabi-ul-Awwal 8, 1428

LONDON, March 27: World oil prices dipped on Tuesday on modest profit-taking after a surge towards $65 a barrel in London amid simmering political tensions over Iran.

The price of Brent North Sea crude for May delivery fell 11 cents to $64.30 a barrel in electronic deals. Earlier on Tuesday it reached $64.64 a barrel, the highest level since December 4.

New York's main oil futures contract, light sweet crude for delivery in May, fell 37 cents to $62.54 in floor trading.

“What is happening now is that in the absence of any fresh impetus we are seeing a bit of a dip,” Bank of Ireland analyst Paul Harris said.

“We have been through one relevant resistance level at $63, so we would expect to see some consolidation before we push towards $65.50-66,” he added.

Industry experts say Iran could disrupt its oil exports should tensions surrounding the Islamic Republic's nuclear programme escalate.

“We see some profit-taking after the gains (on Monday),” added Daiwa Securities analyst Mark Pervan in Melbourne.

“The market has certainly pushed oil prices to a high due to the Iranian tension. Heightened risk in the Middle East has put a high floor in oil prices,” he added.

Iran, the world's fourth-biggest producer of oil, rejected on Tuesday UNSC conditions that it suspends uranium enrichment in return for talks on its controversial nuclear programme.“If suspending uranium enrichment is a prior condition for negotiations, it is impossible to respond positively to this,” Deputy Foreign Minister Mehdi Mostafavi said in remarks reported by the ISNA student news agency.

On Saturday the Security Council unanimously approved further sanctions against Iran for persistently refusing to stop enriching uranium.

The international community has demanded that Iran suspend enrichment, which it fears could be used to make nuclear weapons. Tehran rejects the demand, insisting its nuclear programme is for peaceful energy purposes.

The imposition of sanctions followed word on Friday that Iran had seized 15 British naval personnel in the Gulf, a move, which also upset the oil market.

British Prime Minister Tony Blair warned Iran on Tuesday that efforts to secure the release of 15 sailors would enter a “different phase” if diplomatic efforts failed.—AFP