Monday, September 12 2005 18:53 Hrs (IST) - World Time -

London: World oil prices steadied today (Sept 12, 2005), with the market still concerned about supply levels in the wake of Hurricane Katrina.

New York's main contract, light sweet crude for delivery in October, rose five cents to 62.89 dollars per barrel in electronic deals.

In London, the price of Brent North Sea crude for October delivery gained seven cents to 64.15 dollars per barrel.

"The US oil industry was continuing its recovery efforts in the wake of Katrina," said Sucden analyst Sam Tilley, adding however that crude production and refining could be 'curtailed for months'.

"The market also remains concerned that the hurricane season is not yet over and that with Tropical Storm Ophelia was hovering off Florida's Atlantic coast, there may still be more upside potential to the market," Tilley said.

The market was meanwhile braced for an expected decline in US petroleum stocks when the Department of Energy releases its weekly report on Wednesday.

"People are positioning ahead of the US (petroleum) report and they are expecting a big drop, I suspect," said Mark Pervan, a commodities analyst with Daiwa Securities.

"The market is still jittery about supplies." Although industrialised countries have agreed to dip into their strategic reserves following Katrina, the market is concerned that strained US refineries do not have the capacity to turn the extra crude quickly enough into gasoline, or petrol, and heating oil to meet strong demand.

Prices have eased from the record high of 70.85 dollars per barrel set in New York on August 30.