Oil prices rose this evening but stayed under $35 a barrel on the eve of data which is forecast to show falling US energy demand.

US crude added two cents to $34.91, while Brent North Sea crude added 32 cents to $41.35.

The US Department of Energy will publish its weekly report on American energy inventories on Thursday, one day later than normal because of a public holiday on Monday.

The report is keenly awaited by traders because the US is the world's biggest energy consuming nation.

Oil had tumbled in value on Tuesday, mirroring steep falls in equity markets, as traders were gripped by energy demand worries in a worldwide economic downturn.