Oil prices retreated as news Russian gas has started flowing again to Georgia helped take the edge off a rally that has seen prices surge nearly 20 pct over the past month But analysts warned falls were limited by the unrest in Nigeria, which has already disrupted production in Africa's biggest producer, and by simmering tensions between Iran and the West over Tehran's nuclear programme At 12.15 pm, March-dated Brent contracts were down 37 cents in London at 66.06 usd a barrel, while February-dated US light crude futures were down 50 cents at 67.98 usd, after earlier touching 69.20 usd - the highest level since Sept 2 "The market probably got slightly ahead of itself," said Investec analyst Bruce Evers, adding investors were likely taking profits as concerns over Russian gas supplies fade In a spat reminiscent of the Russia-Ukraine gas price row that sent prices spiraling on Jan 3, Georgia accused Russia of deliberate sabotage at the weekend after its supplies were disrupted by pipeline explosions in Russia. But with Russian gas starting to flow again to the ex Soviet state, and comments by Saudi Arabia's King Abdullah that oil prices were too high, analysts said the market was pausing for breath "People do listen to the Saudi king ... prices probably are too high but it doesn't mean to they wont go higher still," said Evers, pointing to forecasts for cold weather in the northern hemisphere and tensions in Iran and Nigeria Militants have threatened to fire rockets into Nigerian oil terminals amid confusion over talks aimed at securing the release of four foreign hostages taken by separatist rebels in the Niger delta region Violence against oil companies operating in the Niger delta and the federal government has claimed more than 20 lives while oil production has been slashed by 211,000 barrels per day in Nigeria Meanwhile tensions continue to mount over Iran, with the Tehran threatening to resume ultra-sensitive uranium enrichment on an industrial scale if it is hauled before the UN Security Council over its nuclear research programme "If our case goes to the UN Security Council and regardless of what decisions are then taken, the government will... resume all nuclear activities which have been voluntary suspended," said national security spokesman Hossein Entezami