Oil prices made gains on Wednesday but the market was caught between bearish supply fundamentals and tensions over Iraq that are providing support. International benchmark Brent crude futures were 27 cents higher at $24.35 a barrel in London while US Light crude gained 14 cents to $26.56.‘‘Right now we are witnessing a tug-of-war in the market between bearish fundamentals and bullish geo-political developments in Iraq,’’ said Nauman Barakat, a trader at FIMAT International Banque.Oil prices have fallen about 20 per cent from above $30 in early October, hitting an eight-month low last week as Iraq relented to United Nations weapons inspectors and global inventories swelled.Traders will be looking for evidence that OPEC will make good on its vows to rein in production after cartel officials earlier said that excess barrels were being absorbed by the market. The latest data from the American Petroleum Institute showed that US crude oil supplies fell by a meagre 189,000 barrels to 283.8 million barrels in the week ended November 15, providing the market with little direction. Traders are keeping a close watch on Iraq, which vowed to meet the first big test under a UN resolution by providing UN weapons inspectors a complete account of its arms programme.
