Oil prices ticked lower today, awaiting fresh impetus from a weekly report on stockpiles in the United States, the world's biggest energy consumer.
London Brent blend crude futures eased 28 cents to $26.25 a barrel while US light crude fell 35 cents to $29.45.
Traders waited for inventory data from industry group the American Petroleum Institute (API), due for release after the close of business today.
The API reported a near two million barrel build in crude stocks in the week to January 12, but distillates -- including heating oil -- and gasoline inventories showed declines.
US fuel stocks still are hovering not far from 24-year lows leaving markets vulnerable to another sharp fall in temperatures in remaining winter weeks.
Stocks, although at low levels in Europe and the United States, have so far proved sufficient to meet demand and crude prices now stand more than $8 under decade-high peaks struck late last year at the height of concerns over shortages.
Signs of stockbuilding led the Organisation of the Petroleum Exporting Countries (OPEC) to agree last week to remove 1.5 million barrels per day from global crude flows from February 1 to avoid any supply glut in the second quarter.
OPEC officials continued to promise more action to defend oil prices if they should fall outside of the group's preferred target range of $22 to $28 a barrel as winter demand wanes at the end of the first quarter.
OPEC Secretary-General Ali Rodriguez was quoted on Monday as saying that he hoped oil would stabilise in the target band following the group's production cut, but OPEC was prepared to make more drastic reductions if it should be necessary.
Reuters