The price of US crude oil retreated from an all-time high above $98 a barrel this afternoon, after US figures showed that costly oil was taking a toll on demand in the world's top consumer.
In the past month, demand for fuel in the US fell 0.4% from a year ago, the US Energy Information Administration said in its weekly report. That limited the impact of a further decline of 800,000 barrels in crude oil reserves in the run-up to peak winter demand season.
US crude was up 54 cents to $97.24, having earlier hit a record $98.62. London Brent crude also hit a new peak of $95.19, and was later up 95 cents at $94.21.
Since mid-August, oil has soared nearly $30 and gold has approached a lifetime high. Investors, wary of global equity markets where the full blow of the credit crunch has yet to be felt, see commodities as a sure bet.
Record weakness in the dollar has also helped to fuel oil's rally, as investors see dollar assets as relatively cheap.
Oil had gained momentum earlier in the day after the dollar plumbed to new lows against the euro.
