World oil prices fell again yesterday but local Shell General Manager Phil Burton said prices here depended on how long the war in Iraq took.

Over the last five days the cost of a barrel has fallen 21 percent as dealers brace for an imminent US invasion of Iraq.

Bermuda's oil normally comes out of Venezuela.

But Mr Burton said: "Venezualan crude prices are directly linked to world prices, it's a global mechanism.

"The short term prices of crude oil depend on the perception of whether the supply is going to improve or deteriorate.

"Prolonged disruption could result in increased prices. A quick resolution could result in prices falling further."

He said prices had risen steadily since mid-November but started falling about a week ago as pundits began to predict a short war.

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