Oil eases, but market awaits U.S. vengeance

Oil eases, but market awaits U.S. vengeance

LONDON (AFP): The price of oil drifted lower on Monday, giving
back some of the gains racked up on Friday in a market still
nervous of U.S. retaliation for last week's terrorist attacks on
New York and Washington.

A barrel of Brent North Sea crude for November delivery fell
19 cents to US$29.24 amid gentle profit-taking.

Oil prices surged by a dollar a barrel on Friday as investors
made sure they were not short of crude over the weekend in case
the United States did launch military action as part of its
declared "war" on terrorism.

No reprisals materialized over the weekend, so some investors
took profits on Monday.

But analysts still fear that a U.S. military onslaught on
terrorism could set it against the Arab oil-producing world,
potentially jeopardizing crude supplies. Previous conflicts and
crises in the Middle East have habitually led to a sharp rise in
crude prices.

Although prime suspect Osama bin Laden is believed to be in
Afghanistan, which does not produce oil, "the concern is that
while the Middle Eastern governments currently appear to support
the U.S., sentiment could turn sour if many innocent muslims lose
their lives," said Lawrence Eagles, an oil expert with the GNI
brokerage.