The price of oil was steady today, despite a sharp rise in US fuel inventories. Oil had dropped over $3 this week as interest-rate fears triggered a sell-off in commodities and stocks.
US light sweet crude futures rose 4 cents to $68.60 a barrel. The price is over $6.50 below the April record of $75.35. London Brent crude fell 27 cents to $66.65.
US oil inventory data showed petrol stocks rose 2.8 million barrels, which was ahead of analysts' forecasts.
Swelling inventories have dampened supply concern for the peak-demand US summer driving season.
Distillate stocks also rose more than forecast, climbing 2.1 million barrels compared to forecasts for a rise of 1.6 million barrels.
However, crude stocks fell 900,000 barrels, steeper than analyst forecasts for a fall of 100,000 barrels.
Analysts said today that the long-term oil supply outlook remains tight as Asian economic growth fuels rising demand.
China, one of the engines of oil demand growth, posted year-on-year growth of 18.9% in industrial output in May.
World oil prices had slumped around $2 yesterday on expectations that global central banks will get tough on inflation by curbing economic growth and hence demand for crude.
Prices were hit also by signs that the first tropical storm of the Atlantic hurricane season, Alberto, will miss US rigs in the Gulf of Mexico.
Elsewhere, Iran's controversial nuclear programme is still of concern as long as Tehran and the West fail to reach agreement over the matter.
Iran has been given a package of incentives by the world powers for the Islamic republic to stop its nuclear programme but Tehran has yet to say if it will accept the deal.
The Islamic republic is the world's fourth-biggest producer of crude oil and traders fear supply could be disrupted if international sanctions are imposed should Tehran refuse to budge.
