Oil prices lost upward momentum this evening, after rising to a two-week high earlier, as an EU/IMF plan for Ireland failed to calm persistent worries about the health of other euro zone members.
Oil prices outperformed stock markets, however, supported by cold weather in Europe and concerns about security in the Gulf.
US crude was broadly flat at $83.76 a barrel after reaching a high of $85.03 earlier in the day. Oil has declined from a two-year high of $88.63 seen earlier in November due to worries that euro zone debt problems could keep a lid on growth and energy demand. Brent rose 12 cents to $85.70.
Meanwhile, a vast cache of US diplomatic cables released on Sunday in an embarrassing show that Saudi Arabia's King Abdullah has repeatedly urged the US to attack Iran's nuclear installations. Analysts said this pushed to the forefront worries about risks to the oil supply from geopolitical factors.
