LONDON, Dec 29: Oil prices were mixed on Monday as the London and New York markets resumed trading following the extended Christmas break and began the process of post-holiday adjustment.

The price of benchmark Brent North Sea crude oil for February delivery rose 34 cents to $29.40 per barrel in London trade.

In contrast, New York’s reference light sweet crude February contract fell 54 cents to $32.32 per barrel.

The drop in New York came in the wake of steep rises on December 24 as traders tried to cover positions ahead of the holiday amid last-minute fears about a possible terror attack during Christmas.

Additionally, US government figures for commercial oil stockpiles, released on Wednesday, had shown a sharper-than-expected fall in inventories of distillate fuels, used for winter heating oils.

“The rises in New York were a little bit overdone after the stock reports,” said GNI trader Kevin Blemkin, explaining Monday’s fall.

The London market, which did not see the same increases last week, was also adjusting itself, said Prudential Bache analyst Tony Machacek.

“Although the London market is up, we are really catching up with the American contracts,” he said, adding that there was little in the way of other news to move prices.

“The earthquake in Iran is not affecting the oil market because it is not affecting supplies, and the temperatures here in Europe are nothing out of line.”—AFP