LONDON, Jan 20: Oil prices edged back towards recent two-year high points on Monday as markets, which have been fretting over a possible Gulf war, reacted sceptically to news that UN inspectors had signed an accord with Iraq ov $30.65 per barrel, leaving the contract within five cents on Friday’s two-year high.

The New York market, where light sweet crude February-dated futures rose 25 cents to $33.91 a barrel on Friday, was closed Monday for a national holiday.

Iraq has been the main driver supporting the market, despite news of the agreement between the UN and Iraq, said Prudential Bache oil broker Christopher Bellew. That was a reference to a 10-point agreement reached by Iraq and the United Nations, designed to facilitate the work of disarmament monitors.

The accord covers access to all sites, including private homes, encourages Iraqi scientists to accept private interviews and appoints a team for a comprehensive search for warheads.

A senior Iraqi official said the two sides had signed a joint statement in which Baghdad pledged to boost cooperation with the disarmament inspectors.

But Bellew said the market remained highly wary that the accord would avert the threat of war.—AFP