Oil prices hold steady after steep fall

Oil prices are steady this morning after a steep 2 per cent fall a day ago on data showing a surge in US crude stocks.

Oil prices are steady this morning after a steep 2 per cent fall a day ago on data showing a surge in US crude stocks.

Oil supplies from Nigeria, Africa's top oil exporter, are as yet unaffected on the second day of a general strike there, with loading of tankers at export terminals continuing normally.

Unions had threatened to withdraw key staff from loading terminals today to stop exports and exert more pressure on the government to reverse an increase in fuel prices.

London benchmark Brent crude was 2 cents down at $70.40 a barrel by earlier this morning, off highs of $70.80 as it regained some poise after a $1.42 plunge yesterday. Prices had touched a 10-month high of $72.25 on Monday.

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US light, sweet crude was down 11 cents at $68.75.

Prices initially slumped yesterday after data showed an unexpected 6.9 million-barrel jump in crude inventories to their highest since May 1998 but later pared those losses as dealers discounted the build and fretted over fuel supplies.