Oil prices fell today as rising US stockpiles offset the impact of feared supply disruption in key producing countries.
US crude settled down 47 cents to $60.54 a barrel after briefly slipping below $60. London Brent was up 10 cents at $60.54.
Losses were limited by a disruption of oil production in Nigeria due to rising violence in the Niger Delta, and concerns about the reliability of shipments from Iran and Iraq.
"The market would probably be weaker without these concerns," said Christopher Bellew of Bache Financial in London.
US data showed crude stocks had risen by 1.1 million barrels last week - as analysts had expected - putting inventories 10 per cent above last year.
Gasoline stocks rose only 100,000 barrels last week, but the total of 225.6 million barrels in storage is the highest since the week ending June 4th, 1999.
Distillate stocks, which include heating oil, fell 1.3 million barrels but are still at historically robust levels after an unusually warm winter.
High inventory levels have helped to offset the concerns that drove prices as high as $69.20 a barrel in late January. But traders remain nervous that political upheaval could quickly wipe out the stockpile buffer.
Nigerian militants demanding more control over oil wealth struck pipelines and export terminals at the weekend, forcing the shutdown in of 455,000 barrels of daily production.
Iraq, which has been struggling to get oil production back to pre-war levels, is experiencing the worst sectarian violence since the fall of Saddam Hussein. And Iran's nuclear ambitions and the possible ramifications for the nation's oil production are also a worry.
The board of the International Atomic Energy Agency meets on March 6th to debate the next step in resolving Iran's row with the West over its nuclear programme. The Organization of the Petroleum Exporting Countries meets two days later to decide whether to keep pumping flat out in an effort to cool prices.