Oil steady as market weighs up Chavez threat to US crude supply

Oil eased from the highs it hit overnight after Venezuelan president Hugo Chavez's threat to cut crude supply to the US, to trade almost flat at midday, as analysts expressed doubt that his words will be backed by action. While Chavez's threat and other supply concerns are keeping oil supported over 91 usd a barrel, the immediate panic that followed his words has subsided, analysts said, leading prices to soften. At 12.09 pm, New York's WTI crude for March delivery was up 9 cents at 91.86 usd per barrel. In London, Brent crude for March delivery was down 16 cents at 91.78 usd per barrel. Chavez's claim that he will halt US sales if oil giant Exxon Mobil (NYSE:XOM) wins a court case to seize billions of dollars in Venezuelan assets pushed prices to a high of 92.71 usd a barrel overnight, as new risk premium extended the spectacular 4 pct gains oil posted on Friday.