Oil stayed near $63 a barrel this morning on bulging natural gas and heating oil inventories in the United States and the suspension of an oil workers' strike in Nigeria.
US light crude for October delivery was down 3 cents at $63.19 a barrel earlier this morning
after falling 75 cents yesterday and hitting a five-month low. London Brent crude for the new front-month November contract shed two cents to $63.52.
US natural gas prices fell to a two-year low yesterday after Energy Information Agency data showed that inventories had swelled by more-than-expected.
This came on the back of data showing rising distillate fuels, including heating oil, increasing its supply cushion ahead of the northern winter.
The market also eased after the suspension of an oil workers' strike in Nigeria, the world's eight-largest supplier, when tanker loadings at the country's Brass River export terminal resumed.
The planned three-day strike was called off early after the oil unions were satisfied that the government was going to address their concerns over security in the Niger Delta.
Supplies also look to be boosted as the US Department of Transportation said it was reviewing a request by BP to restart production at its problem-ridden Prudhoe Bay oilfield in Alaska although no timeline has been given.
BP shut the the eastern section of the field, the largest in the United States, in August due to severe pipeline corrosion. Output at the field has been restored to 250,000 barrels per day, although that is well below its full capacity of 400,000 bpd.