Reply #3: Oil eases below $64, BP oilfield delay supports [View All]

[ozymandius]

LONDON (Reuters) - Oil eased further below $64 on Tuesday due to healthy U.S. fuel stocks, but a fresh delay to BP's giant Thunder Horse oilfield in the Gulf of Mexico limited the decline.

U.S. light crude fell 20 cents at $63.60 a barrel by 0957 GMT, while London Brent eased eight cents to $63.97 a barrel.

Prices rallied 47 cents on Monday, the biggest rise in three weeks, after BP said that production from Thunder Horse would be commissioned only in 2008. The oil major's previous target called for the first oil output sometime in mid-2007.

"The supply margin is so thin, every little blip is going to move the market. And the acute geopolitical risks have lessened but the chronic geopolitical risks are still there," said Tony Nunan, risk manager at Mitsubishi Corp. in Tokyo.

http://news.yahoo.com/s/nm/markets_oil_dc