LONDON, 7 August 2003 — Oil prices pulled back from sharp gains yesterday as US data showed crude stocks rose in the world’s biggest fuel consumer, though markets remain near their highest since the war in Iraq amid ongoing supply concerns. London benchmark Brent crude traded 10 cents down at $29.83 a barrel after a high of $30.59, while US light crude slipped 32 cents to $31.90 a barrel from a peak of $32.80.

“The market has seen such a dramatic move up that something had to drive profit-taking,” said Peter Gignoux, head of energy at Citigroup in London. “Crude has been the driver and import levels (into the US) were quite healthy.”

Prices slipped after US government data showed a larger-than-expected 2.9 million barrel rise in crude stocks last week, as crude imports rose 210,000 barrels per day. Losses were tempered by a hefty 2.7 million barrel fall in gasoline stocks. Analysts had expected a 500,000 barrel crude rise and a smaller 1.7 million barrel decline in gasoline.

Prices remain supported by buying from fund managers and as concerns remain over low supplies from Iraq. Iraq has struggled to return crude output capacity to prewar levels of 2.8 million barrels per day due to sabotage and looting of its oil infrastructure. Current output stands at 1.2 million barrels per day.

A senior Iraqi oil official said on Tuesday there was no fixed date when the key export pipeline from northern Iraq to the Turkish Mediterranean port of Ceyhan would start.

OPEC decided to maintain its output curbs at a meeting last week, though the group’s price for a basket of crudes rose further above its preferred $22-$28 a barrel range on Tuesday, raising speculation that the cartel may lift production.

OPEC Secretary-General Alvaro Silva said yesterday that external factors including uncertainty over Iraq were driving oil prices up and that world markets were well supplied with oil.

The price of benchmark Brent North Sea crude oil for September delivery rose by 53 cents per barrel to $30.46 in early trading, levels not seen in over four months. New York’s reference light sweet crude September contract showed a gain of 40 cents to 32.62 dollars per barrel in out-of-hours electronic trading.