Oil tumbled from record highs this evening as top exporter Saudi Arabia insisted markets were well supplied despite falling US reserves.
US crude gave up $1.46 to $109.41 a barrel, having earlier traded just once cent below the record $112.21 struck on Wednesday. London Brent crude fell 98 cents to $107.49 a barrel, after hitting an all-time high of $109.98 earlier.
Ali al-Naimi, oil minister for top OPEC producer Saudi Arabia, said supplies were adequate and record prices were not due to a lack of oil, adding that the country did not plan to change current output.
Oil had shot to fresh peaks on Wednesday after US government data showed a surprise drop in crude oil and fuel supplies.
Consumer nations have repeatedly asked OPEC producers to increase production to help ease the sting of rising prices. OPEC ministers will attend an industry gathering in Rome later this month, but are not expected to call a meeting there to review output policy.
