Oil prices slipped toward $58 a barrel today after US oil data showed a modest rise in crude inventories but sharp falls in fuel stocks.
US light, sweet crude oil futures fell 27 cents to $58.44 a barrel earlier this morning after slipping just two cents yesterday. London Brent crude was down 22 cents at $58.76 a barrel.
Data last night showed US stocks of gasoline and diesel fuel fell more sharply than expected last week, helping prices recoup losses after separate data showed manufacturing growth edged closer to stagnation last month, and domestic auto sales fell short of exceptions, casting a pall over economic readings.
US distillate stocks fell by 2.7 million barrels, and gasoline inventories dropped by 2.8 million barrels. Heating oil stocks fell by 1.5 million barrels amid chilly weather in the US northeast but are still up 5 per cent from a year ago.
Crude oil stockpiles rose by two million barrels, short of the forecast rebound from the previous week's sharp decline as refineries boosted production faster than expected.
Oil demand growth estimates in the world's top consumer also remained firm, thanks partly to a low base a year ago, when hurricanes Katrina and Rita caused fuel prices to spike.
Four-week average gasoline demand is up 4.l per cent, while distillate demand is up 8.6 per cent, the data showed.