Oil held below $64 a barrel this morning as investors profited from a rally sparked by supply concerns due to the standoff over Iran's nuclear ambitions and production cuts in Nigeria.
US crude oil futures shed nine cents to $63.85 a barrel at 8.23am after hitting a session peak of $65.10 a barrel yesterday, the highest level since early October.
The market was dragged off its highs late yesterday as investors cashed in on a $7 surge that began in late December, fuelled by speculative buying.
London Brent crude was down 12 cents at $62.50 a barrel. Analysts said the risk of global supply disruptions outweighed higher fuel stocks in the United States, the world's biggest oil consumer, where distillate stocks rose by almost five million barrels for the week ended January 6th.