NEW YORK - Oil prices stemmed a steep slide today as worries about supply disruptions from major Opec producers Iran, Nigeria, and Venezuela countered swelling stockpiles in the United States.
US crude futures ended unchanged at US$62.55 a barrel after losing more than 8 per cent since the end of
January. London Brent crude prices slipped 21 cents to US$60.85 a barrel.
Investors remained preoccupied with the possibility of a major break in oil supplies, particularly from Iran, as a crisis over the Islamic republic's nuclear aims rumbles on.
Adding to the mix, militant attacks on Nigeria's oil infrastructure in January saw the African nation register the largest monthly drop in output among Opec members.
And icy relations between Washington and Caracas have also unnerved markets, after Venezuelan President Hugo Chavez said US President George W. Bush was worse than Hitler.
Venezuela's ambassador to the United States told reporters on Thursday that Venezuela will continue to supply oil to the United States despite the escalating diplomatic crisis that has included the expulsion of envoys in the last few days.
Big money speculators have seized on global instability as a reason to flood into energy markets in recent months, having brought prices briefly within striking distance of the record US$70.85 a barrel.
The steadied oil market comes after a roughly US$5 slide since late January, however, propelled by rising inventory levels in the United States.
Weekly US government inventory data released on Wednesday showed petrol stocks rose 4.3 million barrels last week, more than double analysts' forecasts.
The jump in stockpiles added to an already healthy supply in the United States, where crude inventories are hovering more than 10 per cent above the level a year ago.
"It's not surprising crude fell after such a strong rise in petrol stocks," said Gerard Burg of the National Australia Bank in Melbourne. "Once again it highlights that the fundamentals are really pretty weak."
- REUTERS
