Oil prices fall on warmer weather

Experts say supply fears could push prices up further

Oil prices have fallen below $59 a barrel amid expectations of warmer weather in the United States.

US light, sweet crude dipped 73 cents to $58.66 in New York, while in London, Brent crude fell 57 cents to $58.33.

Analysts predict lower energy demand in the US Northeast, the world's biggest user of heating oil, as the weather gets milder and consumption ebbs.

Oil cartel Opec's statement that it would not cut output at its March meeting also eased fears over supplies.

Analysts had speculated that Opec may cut supplies in a bid to raise prices.

Any cuts would come on top of a planned drop in production announced late last year.

However, Iran's oil minister has said it was unlikely that further cuts over the 500,000 barrels a day that came into effect this month would ensue, if the current price trend continued.

Kazem Vazeri made the comments on the sidelines of an international refining forum in Tehran.

Oil ministers are set to meet in mid-March to decide Opec's output levels for the three months from April.

Geopolitical issues could remain a concern as gunmen in Nigeria seized three eastern European oil workers on Sunday, the latest in a series of foreign kidnappings there.

Violence in Nigeria - Africa's leading oil producer - has meant output has been 20% lower in the past year, and some analysts say it could get worse in the run-up to April's election.