April 05, 2007	Thursday	Rabi-ul-Awwal 16, 1428

LONDON, April 4: World oil prices were mixed on Wednesday after news that major crude producer Iran had decided to free 15 British sailors and official data that showed stockpiles of US motor fuel fell heavily last week.

In London trading, the price of Brent North Sea crude for May delivery rose 25 cents to $68.06 per barrel in electronic deals. It had fallen to $66.93 on news of the sailors’ release.

New York's main oil futures contract, light sweet crude for delivery in May, dropped 34 cents to $64.30 per barrel in pit trading after touching $63.56.

On Wednesday, traders also digested a weekly report by the US Department of Energy that showed petrol reserves fell by five million barrels to 205.2 million last week, against a forecast drawdown of 300,000 barrels.

Motor fuel stocks are being closely watched ahead of the US driving season, which sees Americans take to the roads for their summer vacations.

Altavest trader Tom Hartmann said the DoE report “should keep oil prices well supported.”

Regarding Iran, Britain and the United States welcomed the unexpected announcement to free the sailors.

Barclays Capital analyst Kevin Norrish warned that “the nuclear issue has not gone away.”

Traders said oil price rises were also pared on Wednesday by the release of four foreign oil workers abducted last week in Nigeria, Africa's biggest crude producer, dealers said.—AFP