Saturday, August 5 2006 12:54 Hrs (IST) - World Time -

New York: "World oil prices fell, but losses were limited by strong demand, tight supplies and geopolitical tensions," analysts said.

Traders were monitoring the latest developments in Nigeria, the biggest oil producer in Africa, where three Filipino oil and gas workers were abducted yesterday.

New York's main contract, light sweet crude for delivery in September, closed down 70 cents at 74.76 dollars per barrel.

In London, Brent North Sea crude for September delivery settled down 39 cents at 76.17 dollars per barrel.

"All we really see across the board is a little pullback from a very strong increase over the last week," said Carl Calabro, an analyst at PFC Energy.

London oil prices have receded from over 77 dollars and New York prices from over 76 dollars earlier in the week, but still remain near historical highs.

However, traders said a report on the US job market lent prices some relief yesterday as the government revealed hiring slowed considerably in July in line with other indicators which have also suggested cooling growth of late.

And when the world's largest economy slows it has a big knock-on effect on global oil consumption.

Calabro said hopes were also mounting yesterday that a resolution might be brought to bear on the Israeli-Lebanese conflict, despite ongoing fierce fighting in the region.

Traders said prices have been supported by fears that the conflict could widen and might even cause Iran, a key OPEC member, to blockade some oil exports.