Oil prices eased from fresh one-year peaks today on forecasts of a modest rise in US crude stocks but consumers voiced growing concern over the economic repercussions of higher energy costs.
London Brent crude was down 51 cents at $33.29 after scaling a new 12-month peak today as fresh security fears after the Madrid bombings raised concern about world supplies.
Supply concerns have gained renewed force as OPEC, which controls half the world's crude exports, plans to reduce supplies at a time when Chinese demand is soaring.
Traders are also nervous over the prospects of a summer gasoline supply crunch in the United States, the world's biggest oil consumer, where fuel inventories are running below normal levels.
Many economists argue oil prices above $30 a barrel can hold back growth, and consumers worldwide are voicing unease.
The head of Germany's export industry association said today that oil prices pose a bigger risk to Germany's economic recovery than the euro's exchange rate.