World oil prices slid yesterday owing to profit-taking, a day after Brent crude struck a near four-year peak over Saudi Arabia supply worries.

Brent North Sea crude for April dived $1.32 to $124.88 per barrel in late morning London deals.

The contract had surged on Thursday to $128.40 – the highest level since July 23, 2008 – after an Iranian media report of a pipeline fire in Saudi Arabia, although Saudi officials denied the story.

New York’s main contract, light sweet crude for delivery in April, shed 77 cents to $108.07 per barrel, one day after hitting a nine-month high at $110.55. “The jump in price was prompted by an Iranian media report of an oil pipeline explosion in Saudi Arabia,” said Commerzbank analyst Carsten Fritsch.

“When Saudi Arabia denied the report, the oil price shed part of its gains again. But half of the price increase has remained in place despite the denial from Saudi Arabia. Even if the original story came from Iran and no doubt was spread deliberately, the market clearly believes there to be an increased risk of supply shortfalls,” he added.