(AP):

Oil prices settled lower Friday as investors took profits after Thursday's rally and ahead of the weekend. Prices remained near highs for the year, however, as supply fears persisted over the political stand-off involving Iran's capture of 15 British marines and sailors.

Light, sweet crude futures for May delivery fell 16 cents to settle at US$65.87 a barrel on the New York Mercantile Exchange. The contract closed at a six-month high on Thursday.

Brent crude for May delivery rose 22 cents to settle at US$68.10 a barrel on London's ICE Futures exchange.

"Often when prices trend hard Monday through Thursday, we have short-term traders who are reluctant to carry their positions through the weekend," said Tim Evans, an energy analyst with Citigroup Global Markets.

Evans also pointed out that a weak expiration in April gasolene could have weighed on oil prices. April gasolene futures fell 2.4 cents to settle at US$2.1115 a gallon.

Crude prices are still high, Evans said, as traders have gained an "appreciation for how quickly political events can affect prices."

Iran, in a confidential letter posted Friday on an internal web site of the U.N. nuclear monitor, said its fear of attack from the U.S. and Israel prompted its decision to withhold information from the agency.

Crisis

The crisis had deepened earlier Friday as British Prime Minister Tony Blair denounced Iranian TV footage of two of the captured navy personnel and warned Iran that it "will face continued isolation" if it persists in holding the captives.

Another major factor on oil prices this week was the continuation of a 17-day strike by workers at the French port of Marseilles, Europe's second-largest oil terminal, which could tighten markets and lead to a drop in gasolene exports to the U.S., Evans said.

In other Nymex trading Friday, heating oil rose 0.22 cent to close at US$1.8794 per gallon, while natural gas was up 12.1 cents to settle at US$7.730 per 1,000 cubic feet.