World oil prices steadied on Tuesday even though the International Energy Agency raised its prediction for global crude demand in 2007, and as geopolitical tensions eased in Nigeria.
Brent North Sea crude for July delivery lost ten cents to 69.46 dollars per barrel in electronic trading.
New York's main oil futures contract, light sweet crude for delivery in July, added just four cents to 66.01 dollars per barrel in electronic deals before the official open of the US market.
"Crude futures were almost unchanged (on Tuesday), stalling following strong gains yesterday, after the International Energy Agency raised its world oil demand (forecast) for 2007," said Sucden analyst Michael Davies.
Prices had swung higher on Monday amid supply concerns, after a heavy sell-off on Friday which was triggered partly by fears that rising interest rates would crimp demand, traders said.
The IEA predicted on Tuesday that global oil demand will increase by two percent this year, revising upwards an earlier estimate by some 400,000 bpd, owing partly to a big adjustment of previous demand data.
"Global oil product demand is revised up to... 86.1 million barrels per day for 2007," the IEA said in a monthly market report.
"World demand is now estimated to rise by 2.0 percent or 1.7 million barrels a day in 2007."
The IEA also warned again that the oil market supplies would be tight in the second half of this year, which risked pushing up prices further.
"There are of course uncertainties which could shift the market," the report added, citing geopolitical tensions, economic growth and prevailing weather conditions in key crude producing regions.
Meanwhile, in key crude producer Nigeria on Tuesday, traders monitored an easing geopolitical picture.
An armed group fighting for control of oil resources in the Niger Delta region of southern Nigeria has released 12 foreign workers it had been holding hostage, police there said Tuesday.
Nigeria has seen an upsurge in violence and hostage-takings by militant groups in the past year, lending support to oil prices because it has disrupted energy exports from Africa's biggest crude producer.
Traders' attention was also turning on Tuesday towards the US
Department of Energy's weekly snapshot of American crude oil reserves, which was due for publication on Wednesday.
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