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SINGAPORE, Jan 23 (AFP): Oil prices fell back below 69 dollars in Asian trade today on profit-taking but worries remained over security and political tensions in key producers Nigeria and Iran, dealers said.
New York's main contract, light sweet crude for March delivery, was down 18 cents to 68.30 dollars a barrel from its close of 68.48 dollars in the United States Friday and after topping 69 dollars in the morning.
The March contract hit an intra-day high of 69.20 dollars, building on gains in New York on rising concerns over developments in Nigeria and Iran.
Unrest in Nigeria has already disrupted production in Africa's biggest producer while simmering tensions between Iran and the West over Tehran's controversial nuclear programme were also at play, dealers said.
Militants have threatened to fire rockets into Nigerian oil terminals amid confusion over talks aimed at securing the release of four foreign hostages taken by separatist rebels in the Niger delta region.
Violence against oil companies operating in the Niger delta and the federal government has claimed more than 20 lives while oil production has been slashed by 211,000 barrels per day in Nigeria, Africa's largest oil producer.
Iran, the second-biggest crude producer in the Organisation of Petroleum Exporting Countries, has also asked the cartel to reduce total oil production quotas by one million barrels per day (bpd) from April to prevent a seasonal easing of prices in the second quarter of the year.
The comments came as a political and security cloud hovers over Iran, with Tehran warning the West that UN sanctions over its controversial nuclear programme could provoke a world oil crisis.
OPEC's production ceiling stands at 28 million bpd. At its last meeting in Kuwait on December 12, the cartel decided not to renew an offer of two million bpd in emergency additional output.
In another development, oil kingpin Saudi Arabia said Monday oil prices were too high and this was not good for developing countries.
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