Oil prices rebounded, reversing earlier losses after news that US energy stockpiles fell across the board last week, suggesting strengthening demand.
US crude for December, jumped to $87.49, before pulling back to $87.03, up 31c from yesterday's closing level.
London's Brent North Sea crude for December rallied to $88.96, before pulling back to $88.36, up 3c.
Oil fell yesterday in profit-taking, snapping a six-day winning streak, after New York struck $87.63 - its highest level since early October 2008 - on the back of the weak US currency.
However, the market bounced back after the US Department of Energy (DoE) said US crude inventories tumbled 3.3m barrels in the week ending 5 November.
That confounded market expectations of an 800,000-barrel increase.
The DoE said gasoline stockpiles slid by 1.9m barrels, more than double forecasts for a 900,000-barrel drop.
Distillates, which include diesel and heating fuel, slumped 5m barrels. Analysts had pencilled in a far smaller drop of 2m barrels.
Oil also won modest support from better-than-expected US new jobless claims data which showed a fall of 24,000 to 435,000 in the week ending November 6.
That was well below the 450,000 expected by most economists and the lowest level since early July, when claims fell to 427,000.
