Reports indicating rising fuel inventories have triggered oil prices to slip lower, limited by concerns that Iranian nuclear dispute could yet threaten supplies. March-dated US light crude futures dropped by almost one dollar to US$66.60 in New York, March-dated Brent in London slipped to US$63.71 a barrel. Along with the 32.8 mln barrel crude surplus, OPEC's decision to leave output near 25 year highs and Nigeria's announcement it will have 550,000 bpd of spare capacity by mid-year all contributed to the price drop.
The UN's nuclear watchdog, the IAEA, began an emergency session, widely expected to refer Tehran to the Security Council over its disputed nuclear programme. The Security Council has the power to impose sanctions. Traders fear sanctions against Tehran will cause a supply crunch as the world's spare capacity of 1.5 mln bpd falls short of Iran's 2.5 mln bpd of oil exports.
06-Feb-06 
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