Oil prices eased from three-month highs today as Iraq sold its first crude oil since US-led forces invaded in mid-March.
US light crude in New York fell 85 cents to $31.51 a barrel, giving back gains made Wednesday amid a steep fall in US crude stocks. Prices are up more than 30 per cent on last year after gaining more than $5 since the start of May.
Brent crude in London settled 56 cents lower at $27.83 a barrel.
Prices fell as Iraq awarded a tender to sell 10 million barrels of crude oil held in storage - its first oil sales in nearly three months.
"I expect the exports to resume in a week or 10 days," said Mr Mohammed al-Jibouri, director-general of Iraq's State Oil Marketing Organization.
Only one US company, ChevronTexaco, was among the six buyers, alongside Spanish refiners Repsol and Cepsa, Turkey's Tupras, Italy's ENI and French oil firm Total.
Looting and sabotage at oil facilities have delayed the resumption of Iraq's oil exports and will keep shipments well below prewar levels of around 1.7 million barrels per day for several months.
The delays in Iraq's postwar export resumption enabled the OPEC producer cartel to postpone fresh supply cuts at Wednesday's meeting in Qatar.
OPEC, which controls around half the world's oil exports, decided to meet again in just seven weeks, on July 31st, in case the return of Iraqi shipments undermines high prices.
OPEC sets a $22-$28 target range for its basket of seven grades of crude oil. The basket was last valued at $27.86.