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Oil steadied around $62 a barrel today, pressured by expectations of milder weather in top consumer the United States and ample fuel stockpiles.
The chance of another oil output cut next week by Opec provided a floor for prices that have been stuck in a range almost continuously since late September.
"The market is pretty much range trading until we get more evidence of what Opec is going to do," Kevin Blemkin, an oil broker at Man Financial in London, said.
US crude CLc1 was down 1 cent US$62.18 by 1815 GMT. Prices are down from an all-time peak of US$78.40 hit in July. London Brent crude LCOc1 lost 51 cents at US$62.56.
Putting a lid on prices was the knowledge that crude oil inventories in the United States, the world's largest oil consumer, are at their highest for the time of year since 1993.
Prices also are restrained by expectations that a recent cold snap in the US Northeast, the world's biggest heating oil market, will relent by the weekend.
Oil ministers from Opec meet on Dec. 14 in Nigeria. Opec agreed to lower output from Nov. 1 and several oil ministers have said they back a further reduction.
"Crude oil should benefit next week from an increased risk premium due to the Opec meeting," analysts Petromatrix said in a report. "An Opec cut is, however, starting to be priced in."
Prices got little lift on Wednesday from data showing commercial crude stocks in the United States unexpectedly fell by 1.1 million barrels last week.
Distillate inventories, including heating oil, declined by 400,000 barrels, roughly in line with expectations.
On Thursday, gunmen attacked an Agip oil export terminal in the Niger Delta and kidnapped three Italians and a Lebanese. Eni said work at the terminal was unaffected.
A fifth of output in Nigeria, the world's eighth largest oil exporter, is already closed because of militant attacks.
- REUTERS
