LONDON, Feb 28: World oil prices slid on Tuesday as traders looked to healthy US crude stocks and set aside international political tensions, dealers said. New York’s main contract, light sweet crude for delivery in April, fell 30 cents to $60.70 per barrel in pit trading.

In London, the price of Brent North Sea crude for April delivery eased four cents to $60.95 per barrel in electronic deals.

In Tuesday trading “light crude futures were lower, continuing fall from the previous day after terrorist concerns in Saudi Arabia eased and the market refocused on plentiful supplies”, analysts at the Sucden brokerage said.

New York prices had tumbled $1.91 in closing deals on Monday following Friday’s news that Saudi security forces had foiled an Al-Qaeda attack on the Abqaiq refinery in the oil-rich Eastern Province.

US crude futures spiked by more than $2 on Friday as news of the attack compounded worries over global crude supplies.

The fall in oil prices this week “highlights that even with the increased tension, the market remains focussed on US stock levels which are more plentiful than usual and are expected to have increased even more in Wednesday’s report”, Sucden analysts said.

US crude stocks are some 10 per cent higher than at the same stage last year, while gasoline reserves are at their highest level for seven years.

Traders are meanwhile awaiting the weekly snapshot of US crude inventories on Wednesday from the US Department of Energy.

According to London analysts, crude stocks are expected to have jumped by 900,000 barrels during the week to February 24.

Market expectations are that gasoline reserves will have fallen by 200,000 barrels, and distillates (including heating fuel and diesel) are forecast to have dropped 1.5 million barrels.

Despite the healthy US stocks outlook, international political tensions continue to worry market participants.—AFP