Oil paused from the previous session's jump of 3 per cent and steadied at below $80 a barrel today, as concern over sluggish economic recovery and energy demand kept investors from pushing prices higher.
Oil prices jumped yesterday, while US stocks logged their best one-day percentage gain in three months, as investors saw data showing that the US economy returned to growth in the third quarter as brightening the outlook for profits and oil demand.
US crude for December delivery inched up 8 cents to $79.95 a barrel, after settling up $2.41 at $79.87 today. London Brent crude slipped 6 cents to $77.98.
Although oil prices have risen nearly 79 per cent so far this year, they are still almost 46 per cent below their July 2008 high of more than $147 a barrel.
The world's largest economy grew at an annualised rate of 3.5 per cent in the July-September period, beating forecasts of a 3.3 per cent rise and ending a deep slump.
In another sign that demand in the world's largest fuel consumer could rise, the number of US workers filing new claims for jobless benefits dipped by 1,000 last week.
However, Exxon Mobil, Royal Dutch Shell and Eni dashed hopes for an imminent turnaround for the oil industry, saying sluggish economic recovery was weighing on energy demand and prices.
Bearish comments from the trio also followed government data on Wednesday that showed a surprise build in US gasoline inventories.
Analysts said traders were also awaiting more economic data to gauge if the pace of recovery in the US was sustainable.
Today's data includes the University of Michigan consumer sentiment survey for October and the Institute of Supply Management Chicago's October index for manufacturing activity.
Still, analysts said oil prices were expected to find support from the US dollar.
The dollar, which tends to decline when doubts about a global recovery fade, was back on the defensive today, as a bout of profit taking in growth-linked currencies and the euro seemed to have run its course with investors piling back into risk.
Separately, Opec seaborne oil exports, excluding Angola and Ecuador, will rise 40,000 barrels per day (bpd) in the four weeks to November 14th, an analyst who tracks future shipments said yesterday.
Qatar, one of Opec's smallest producers, has notified at least two Asian term buyers that it will supply crude oil at full contracted volumes for December, steady with November levels, trade sources said today.
Reuters