Crude oil futures came under pressure again yesterday as the threat of a military attack on Iraq appeared to be receding.
President George W. Bush said on Monday the US was willing to try for a diplomatic solution "one more time".
While most traders were still expecting military intervention in Iraq, Mr Bush's comments made the timing seem more remote.
Late in London, December Brent was 34 cents down at $26.25 a barrel. By early afternoon in New York Nymex WTI was 57 cents down at $27.80 a barrel after a 10-week low of $27.75.
Analysts have not ruled out the possibility of conflict in the oil-rich Middle East, a threat that has helped push oil prices up more than 40 per cent this year.
"The threat of war hasn't disappeared, it has just been delayed," said Commerzbank oil analyst Mr Steve Turner.
Diplomats at the United Nations are reviewing a latest US draft resolution, which drops explicit authorisation to use force against Iraq but provides cover to attack it after a serious warning if it obstructs weapons inspectors. - (Financial Times Service)
