Oil prices were mixed in Asian trade as the market responded to US President George W. Bush's decision to halt deliveries to the US strategic reserves for the time being, dealers said.
Prices were racing towards record highs on geopolitical tensions in Iran and Nigeria, two key suppliers of crude to the international community, until Bush announced new measures to halt the sharp run-up in petroleum prices, they said. At 1.50 pm (0550 GMT), New York's main contract, light sweet crude for delivery in June, was down 12 cents to 72.76 usd a barrel from 72.88 in US trading overnight.
Bush's announcement had most impact on the US-based benchmark given its focus on US gasoline prices and Brent North Sea Crude for June delivery was nine cents higher at 73.30 usd after closing at 73.21 in London.
"What Bush said was very important because prior to his speech, prices were rising on comments from Iran," said Dariusz Kowalczyk, senior investment strategist with Hong Kong-based CFC Seymour Securities.
Bush announced on Tuesday measures to combat rising fuel prices including the temporary suspension of deliveries into the Strategic Petroleum Reserve.
Among the measures, he ordered an investigation into record-high fuel prices across the United States amid concerns that unscrupulous suppliers might be gouging US consumers. "One immediate way we can signal to people we're serious about increasing supply is to stop making purchases (for) ... the strategic (reserve) for a short time," Bush said.