Oil prices were weaker yesterday as the market bet on only minimal disruption to US oil and gas supplies owing to Tropical Storm Claudette, which continued to gain strength over the Gulf of Mexico.

US light crude slipped 17 US cents to US$31.11 a barrel, while London's Brent crude was down 25 US cents at US$28.94.

Six oil firms shut some oil and gas production in the Gulf of Mexico over the weekend and evacuated workers as a precaution as Tropical Storm Claudette remained offshore.

US crude rose to a four-week high at US$31.75 on Friday over worries that the storm would cause more widespread disruption to already tight oil supplies.

"Tropical Storm Claudette has probably had its major price impact. We should see prices trading lower in the days ahead," said Sydney-based independent oil analyst Simon Games-Thomas.

Thin fuel stocks in the United States at a time when summer demand for gasoline reaches a peak has kept US crude above the US$30 mark, and traders are wary of any disruptions to supplies.

The absence of a regular supply of Iraqi crude from the international market is also putting a floor under prices.

A senior Iraqi oil marketing official said on Sunday that Baghdad was still not in a position to discuss term oil contracts with customers because of lingering doubts about Iraq's ability to raise and sustain production at oilfields and pipelines.

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