World oil prices dropped Wednesday on profit-taking after earlier striking four-month peaks on worries over crude supplies from Iran and Nigeria.

New York's main contract, light sweet crude for delivery in February, lost 58 cents to close at 65.73 dollars a barrel after earlier striking 66.93 dollars -- the highest level since September 22.

In London, the price of Brent North Sea crude for March delivery eased 71 cents to end at 64.19 dollars a barrel. It earlier hit 65.52 dollars, last seen September 22.

On the New York Mercantile Exchange, heating oil futures for February fell 3.6 cents to settle at 1.7555 dollars a gallon, while February gasoline slipped 5 cents to settle at 1.7733 dollars a gallon. Natural gas futures dropped 47.4 cents to settle at 8.694 dollars per million British thermal units, after rising as high as 9.39 dollars.

International Atomic Energy Agency, the UN atomic watchdog, said Wednesday it would hold an emergency meeting on Iran's nuclear program on Feb. 2 but Tehran voiced confidence it would avoid referral to the UN Security Council for possible sanctions. Iran announced last week that it is restarting a nuclear research program after a two-year suspension.

Traders are worried economic sanctions, which the U.N. Security Council could impose, will drastically cut world oil supplies and drive up prices. Iran, the second-biggest oil producer in the Organization of Petroleum Exporting Countries, exports some 4.2 million bpd.

In Nigeria, Africa's biggest producer, separatists blamed for a string of attacks on oil installations have called on foreign energy companies to leave. Five soldiers were killed and nine were missing after militants attacked an oil flowstation belonging to Anglo-Dutch company Shell in southern Nigeria, an army spokesman said Wednesday.

Oil prices could top 70 dollars a barrel again if the nuclear dispute between the West and Iran drags on, raising the likelihood that Iran would cut off production, said the dealers.

Crude futures hit a record high of 70.85 dollars in intraday trading in August 30, after Hurricane Katrina hit the Gulf of Mexico.

Source: Xinhua