April 04, 2007	Wednesday	Rabi-ul-Awwal 15, 1428

LONDON, April 3: World oil prices tumbled on Tuesday as major crude producer Iran signalled that progress had been made to end its standoff with Britain over the capture of 15 British sailors.

Prices were lower but remained above $67 a barrel in London, where on Monday they had hit $69.58 -- the highest level since September 1, 2006.

The price of Brent North Sea crude for May lost $1.29 to $67.45 in electronic deals in late London trading.

New York's main oil futures contract, light sweet crude for delivery in May, fell 1.64 dollars to 64.30 dollars in floor trading.

“It seems as if a lot of the tensions between the UK and Iran have dissipated ... (and it) seems we're moving towards a resolution of this problem, which may mean the market has further to fall,” said Base Commodities broker Christopher Bellew.Crude futures had soared over the past week on concerns that Iran, the world's fourth-biggest producer of oil, could move to disrupt its energy exports should the crisis with Britain escalate.

“There is some profit-taking in the oil market, reflecting ... thinking that there won't be any real disruption to crude oil supply and that the situation will be resolved,” said Victor Shum, senior principal at Purvin and Gertz.—AFP