Oil prices dipped this evening after US data showed that fuel stockpiles surged last week in the world's biggest energy consumer.
The US dollar also gained after its recent weakness, with had supported oil and other commodities priced in the currency in recent days.
Government figures showed crude inventories in the US unexpectedly fell in the week to October 2 by one million barrels, compared with analyst expectations of a 2.2 million barrel rise.
But the weekly report from the U.S. Energy Information Administration (EIA) also showed a surge in fuel stockpiles, an indicator of sluggish demand recovery from industries and consumers.
Petrol stocks leapt by 2.9 million barrels, far more than the one million barrels predicted by the market as refiners upped production. Distillate stocks - which include diesel and heating oil - rose by 700,000 barrels, more than double the predicted 300,000-barrel increase.
US crude fell $1.20 to $69.68 a barrel, while London Brent crude fell $1.16 cents to $67.40. Oil has rebounded from an 11-week low of around $66 in late September, but some analysts warn that it could slip back in the near term.
