World oil prices showed slight gains on Friday in calm trading as traders were reassured over positive developments concerning the Iranian nuclear energy crisis.
New York's main contract, light sweet crude for delivery next month, rose US$0.38 to US$69.88 per barrel in closing trades.
In London, Brent North Sea crude for August delivery added US$0.35 to US$68.80 per barrel in late deals. The contract for next month expired Thursday at the close.
While traders looked to lock in positions ahead of the weekend, James Williams, analyst at WTRG Energy, said "There is virtually no fundamental that doesn't point to lower prices."
Crude futures had rebounded by almost US$1 between Wednesday and Thursday, erasing much of the losses sustained during the previous eight days.
According to Kevin Norrish of Barclays Capital, there was "a positive response from Iranian President Ahmadinejad to the recent offer of incentives to curb Iran's nuclear program."
Sucden analyst Sam Tilley remained cautious over Iran however.
"It seems clear that while these latest developments are positive, there is still along way to go before we reach any kind of solution to the issue," he said.
A top aide to Iran's supreme leader said on Friday that Tehran will not stop enriching uranium as a precondition for entering nuclear talks with six world powers.
"It is a principle that the Islamic Republic of Iran will not retreat from [uranium] enrichment," said Ali Akbar Velayati, a top advisor on foreign affairs to supreme leader Ayatollah Ali Khamenei, in comments reported by the ISNA news agency.
However, he added: "We will study any proposal by the countries who are involved with our nuclear case."
Iran has made clear that the country is not prepared to stop enriching uranium as a precondition for entering talks with six world powers, including the US, on a package of incentives aimed at encouraging Iran to forego highly sensitive nuclear work.
Iranian leader Ayatollah Ali Khamenei had said on Thursday in Tehran that his country would not succumb to pressure over its atomic program, implicitly rejecting international calls to suspend nuclear enrichment.
The market fears that Iran, the world's fourth largest crude producer, could cut exports if UN sanctions were imposed to force it to stop enrichment.
Crude prices had held steady for much of Friday and a slight recovery for commodities as economic concerns subsided over the threat of rising inflation.
Investor worries had eased following comments from Federal Reserve chairman Ben Bernanke that inflation expectations have "fallen back somewhat," Tilley added.
Most global commodities have suffered heavy losses over the past month, prompted by fears that central banks may hike interest rates to combat rising inflation, thereby crimping growth and demand.
However, traders seized this week on news of sharp oil demand growth in the US and China -- respectively the first and second-biggest crude consumers in the world.
The US and China together consumed 27.6 million barrels per day of crude oil last year, accounting for one third of total global demand, British energy giant BP had said in an annual review published on Wednesday.
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