Oil prices inched lower in light trade this evening as weak German growth stoked concerns about the global economy.
Stronger than expected US industrial output data for July pulled crude off earlier lows, but prices remained under pressure as markets awaited the outcome of a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel on the future of the euro zone.
Brent crude fell 12 cents to $109.79 a barrel, having dipped earlier to $108.23. US crude fell 50 cents to $86.38.
Early weakness came as data showed sluggish German growth hobbled the euro zone, dragging on crude.
Crude pared losses after data showed U.S. industrial output rose 0.9% in July, beating forecasts and marking its fastest pace in seven months. Further support came after Fitch affirmed the United States' top-notch credit rating.
Statoil find 'could be biggest this year'
Earlier, Norway's Statoil said that a recent North Sea oil discovery may be the world's biggest so far this year.
Statoil said on August 8 that it had struck oil in the Aldous Major South prospect in the North Sea and estimated its size at between 200 million and 400 million barrels of oil equivalent (boe) and that it may be connected to the Avaldsnes discovery made by Sweden's Lundin Petroleum.
Today, Statoil confirmed the two prospects were connected and estimated the size of the discoveries together at between 500 million and 1.2 billion barrels of recoverable oil equivalent (boe).
'This is probably the biggest oil find (worldwide) in 2011,' Tim Dodson, Statoil's head of exploration, told reporters.
In June ExxonMobil said it had made three finds in the Gulf of Mexico totalling 700 million boe, while in April Statoil made a find in the Barents Sea estimated to hold at least 150-250 million.
The latest find will help Statoil achieve its goal of hiking its annual production by a third by 2020 to 2.5 million boed, Dodson said.
Statoil has struggled with declining oil production in recent years and has often revised downwards its future production estimates. Last year it produced 1.89 million boed, down from 1.96 million boed in 2009.
