Signs that tension in South America is subsiding prompted an easing in oil prices over the weekend.
On Friday oil hit over $106 per barrel in the wake of a US Labor Department report indicating that some 63,000 jobs were cut by employers during February in the ailing US economy, which had in turn given rise to speculation that the Federal Reserve would move once more to cut the key base rate of interest.
However, price inflation was curbed after the dispute between Venezuela and Colombia showed signs of abating when it was confirmed on Sunday that diplomatic ties between the two countries are to resume.
On the New York Mercantile Exchange yesterday light sweet crude for April delivery had dipped by 35 cents to $104.80 by midday.
On Friday the contract had surged to a new record of $106.54, before falling 32 cents to close at $105.15 per barrel, the Associated Press reports.
