Oil prices steadied this evening after Venezuela's state oil company cut supplies to US energy giant ExxonMobil. There was also news of a smaller than expected rise in US crude stockpiles.
The International Energy Agency meanwhile forecast that the world oil market could be set for a lengthy slowdown, signalling a sharp shift in the climate which pushed prices to a record $100 a barrel last month.
US crude gained 22 cents to $93.08 a barrel, while Brent North Sea crude fell 20 cents to $92.98.
Venezuela's state petroleum company PDVSA said yesterday it had suspended oil supplies to ExxonMobil in retaliation for the US energy giant's effort to freeze billions of dollars in global PDVSA assets.
The market also digested stockpiles data from the US - the world's biggest energy consumer. The US Department of Energy revealed that crude stockpiles rose 1.1 million barrels to 301.1 million in the week ended February 8, smaller than the gain of 2.38 million barrels forecast by analysts.
Meanwhile the International Energy Agency in its latest monthly report said that in light of weaker global economic prospects, it had cut its forecast for world oil demand this year by 200,000 barrels per day.
