World oil prices skidded downwards today as US-led forces took the northern Iraqi oil city of Kirkuk, and as traders anticipated the return of Iraqi oil.
New York's benchmark light sweet crude contract for May delivery slumped 1.39 dollars to 27.46 dollars. In London, reference Brent North Sea crude for May delivery fell 78 cents to 24.47 dollars a barrel.
Kurdish forces backed by US troops captured Kirkuk without a fight, meaning US-led forces now control Iraq's northern oil centre as well as its southern fields.
US Vice President Mr Dick Cheney had already helped to depress prices by raising the prospect of a return of substantial amounts of Iraq crude to world markets this year, traders said.
"With some investment, we ought to be able to get their production back up in order of 2.5, 3.0 million barrels a day within, hopefully, by the end of the year," Mr Cheney said yesterday.
Exerting slight downward pressure on the market was new uncertainty about a meeting of industry cartel OPEC reportedly scheduled for April 24th to consider a cut in production.
International Energy Agency figures showed much of recent production losses in Iraq and Nigeria - which has been hit by weeks of ethnic and political violence - had been made up by Saudi Arabia and Kuwait.
AFP