Oil prices gave up some earlier gains this evening after US government figures showed a much larger than expected rise in crude stockpiles in the world's biggest consumer.
The US data showed weekly crude oil stocks at the delivery point of Cushing, Oklahoma, were up by 800,000 barrels to 34.3 million, while total weekly crude stocks rose by 7.2 million barrels to 346.1 million barrels.
US crude rose 35 cents to $41.13, while Brent crude was 42 cents up at $44.50. Oil has plummeted by more than $100 since hitting a record over $147 a barrel in July last year as the global downturn has affected demand for fuel.
Before the US figures came out, oil prices were lifted by signals from the Organisation of Petroleum Exporting Countries that it may cut oil production further in an attempt to bolster the market.
OPEC is deeply worried by the impact the global economic downturn is having on oil demand and has promised to reduce oil production by a total of 4.2 million barrels per day (bpd) from levels seen in September. Its president Jose Botelho de Vasconcelos, who is also Angola's oil minister, told Reuters on Tuesday the 12-member group could remove more oil from the market if needed to boost prices.
