Oil prices hovered around $83 today after a surprise decline in US inventories stoked concerns about supplies ahead of the peak winter demand season.
US crude eased 4 cents to $83.04 a barrel earlier today after rising over 2 per cent in the previous session. Oil had traded as high as $83.76 earlier on Thursday, near the all-time high of $83.90 struck on September 20th. London Brent crude eased 9 cents to $80.06.
US crude oil stocks dipped 1.7 million barrels last week to the lowest level since January, a report by the Energy Information Administration (EIA) showed, countering analyst expectations for a 900,000 barrel rise.
US distillate supplies slid by 600,000 barrels last week, according to the EIA, while heating oil stocks rose 1 million barrels. Gasoline stocks rose 1.7 million barrels.
Worries of a winter supply squeeze have kept oil on the boil over the past month and sent US heating oil prices to a record high on Thursday.
An under-performing US dollar continues to push oil and commodity prices higher, with gold and platinum hitting fresh highs yesterday as the greenback weakened against the euro.
The decision by the Organization of Petroleum Exporting Countries to add 500,000 barrels per day of crude to the market starting in November has not cooled prices.