Friday, June 23 2006 12:58 Hrs (IST) - World Time -

Singapore: Oil prices held steady in Asian trade today (June 23, 2006) as the United States increased the pressure on Iran to halt its nuclear enrichment activities, dealers said.

At 11:00 am (0830 IST), New York's main contract, light sweet crude for delivery in August, was down four cents at US$ 70.80 per barrel from US$ 70.84 in late-yesterday trade in the United States.

Brent North Sea crude for August was down eight cents to US$ 69.87.

"The market has been trading in a tight range over the past couple of weeks, between US$ 68-73. It is looking for new direction," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.

The Iranian nuclear dispute with the West is still weighing on the market.

"The (exchange) of rhetoric between both sides will continue to keep the oil market on the edge," Shum said.

US National Security Adviser Stephen Hadley called on Iran yesterday to respond swiftly to an incentive package proposed by five members of the United Nations Security Council plus Germany by the end of June but Tehran insists it will take until August 22 to answer.

The European Union's foreign policy chief Javier Solana presented the proposal on June 6. The mix of incentives and a threat of Security Council action is designed to pressure Iran into halting its uranium enrichment activities.

"The Iranian issue will continue for a couple of months," Shum said.