LONDON, Dec 24: IPE Brent futures toyed with a new post-Sept 11 peak on Tuesday but closed with a slight loss in thin pre-holiday trade, with fears of war in Iraq and a supply sapping strike in Venezuela still lending support.

By the early close of 1230 GMT, February Brent futures settled 11 cents lower at $29.61 a barrel, with 13,500 lots traded on the contract. The market moved to within seven cents of a new 15-month high, peaking at $29.82 a barrel.

Brent leapt by $1.38 a barrel on Monday to close at $29.72 after climbing to a session high of $29.85. Profit-taking corrected down to a low of $29.40 on Tuesday in the late morning, but the selling did not carry through.

“I guess the only surprise is that we had a slight dip at all, you just can’t look at going short into this weekend,” said one IPE trader. “The Americans are on their own this afternoon and Thursday, so we may be looking at new highs when we open.”

In ACCESS out-of-hours trade, February light sweet crude was one cent weaker at $31.74, although New York trade will open for a shortened session at 1500 GMT.

The IPE reopens for business on Friday, December 27, for a shortened session.

Many traders have had leave cancelled during the Christmas week as the impact of the four-week-oil strike in Venezuela becomes a growing concern for the oil market.

Moreover, traders are getting nervous about the possibility that in war in Iraq might come before the Venezuelan strike is resolved, depriving world oil markets of a combined five million barrels per day of crude.—Reuters/AFP