Oil fell toward $62 a barrel today, shedding some gains from a major disruption to Nigeria's exports as dealers braced for another increase in already robust US inventories.
US crude futures for April delivery traded 46 cents lower, or 0.73 per cent, to $62.28 a barrel. London Brent crude lost 42 cents to $61.18 a barrel.
The U.S. contract soared $1.45 gain yesterday after Nigerian militant attacks at the weekend shut in a fifth of crude supply from the world's eighth-largest oil exporter.
Fears over Nigeria and continued anxiety about Iran's nuclear programme have helped oil prices rebound about 8 per cent from a 2006 closing low of $57.65 a barrel a week ago, which followed a hefty increase in weekly US crude and gasoline stocks.
Gasoline inventories already at their highest in six years are expected to have risen again last week by 800,000 barrels, while crude stocks were expected to have climbed by 700,000 barrels, a Reuters poll of nine analysts showed.
"With bearish US statistics expected, traders have found a reason to take profit from a sharp gain since late last week on news about Nigeria and Ecuador," said Nahiro Niimura, vice president of Mizuho Corporate Bank's derivatives unit in Tokyo.
Data from the US Energy Information Administration (EIA) will be released tomorrow, a day later than usual because of the Presidents Day holiday on Monday.
In Japan, commercial crude oil stocks rose almost 7 percent last week, extending a slow recovery from a more than three-decade low, while kerosene widened its surplus over a year ago, industry data showed on Wednesday.
Crude stocks rose to 15.04 million kilolitres (94.60 million barrels) in the week to Feb. 18 from 14.09 million kl the previous week, the Petroleum Association of Japan said.
While supply data will take centre stage tomorrow, dealers are keeping an anxious eye on developments in Nigeria, where militants holding nine foreign hostages vowed to continue
attacks in a campaign to get more local control of the Niger Delta's vast oil wealth.