World oil prices firmed on Friday after a five-session drop amid renewed concerns over unrest in Iraq despite a ceasefire in its holy city of Najaf.
New York's main contract, light sweet crude for October delivery, rose eight cents to US$43.18 per barrel in closing trade.
The price of London's benchmark Brent North Sea crude oil for delivery in October advanced US$0.31 to US$40.64 per barrel at the close.
Prices remain far short of the all-time high of US$49.40 reached in New York trading a week ago.
Analyst John Kilduff at Fimat said reports about sabotage in Iraq kept the market on edge about the prospect of increasing supplies from the country.
But he said the rise was modest and that the truce in Najaf could mean further declines.
Prices "would have been lower except for the fact that it's the weekend, and there are worries about the [Republican National] Convention and potential terrorism" linked to the gathering in New York.
Analysts said the end of the fighting in Najaf under a ceasefire brokered by Grand Ayatollah Ali al-Sistani is likely to calm the oil market if it holds.
"With Sistani really taking charge, prospects for stable production out of southern Iraq have increased dramatically," Kilduff said. "While the market is waiting to see if indeed that is the case, it prevented the market from taking off."
"The halt to fighting in Najaf is a key factor" behind steadier prices, Societe Generale analyst Frederic Lasserre said.
But some traders voiced concern that unrest could easily return to Iraq.
"Peace is supposed to be achieved [in Iraq with the ceasefire[ and that could be an end to this uprising but with the Iraq situation, who knows what can happen next? There could be another problem with the pipelines," GNI-Man Financial trader Kevin Blemkin said.
"People are concerned and are not prepared to go short [or sell their oil] into the weekend," Blemkin added.
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