Oil prices pulled back from a record $135 a barrel this evening as dealers took profits from a dazzling rally and a recovering US dollar dampened commodities markets.
US crude dipped 95 cents to $132.22 a barrel after jumping earlier in the day to a record $135.09. London Brent eased 69 cents to $132.01 after touching a peak of $135.14.
Dealers also noted selling across commodities markets as the dollar recovered after US figures showed a fall in weekly jobless claims.
Crude prices have rallied more than 30% since the start of the year, driven by worries about tight supplies of refined products in the near term and mounting global demand over the longer term. Oil has risen sixfold since 2002, propelled by rising consumption in China and other developing countries.
Oil prices had surged on Wednesday after US weekly data showed that the country's crude stocks had declined by 5.4 million barrels. Analysts had expected an increase.
The US has repeatedly called on the Organisation of the Petroleum Exporting Countries (OPEC) to boost its output to try to calm markets, but the group has said no increase is needed. OPEC Secretary-General Abdullah al-Badri called the oil market 'crazy'.
