Oil prices were lower this evening as pressure from high inventories offset hope that rebounding economies would lift demand this year. In London, Brent crude fell 11 cents to $97.49 a barrel, while US crude fell $1.23 to $87.88.
Last week, the Energy Information Administration reported that US crude oil inventories rose 2.62 million barrels last week, against expectations stockpiles would be lower.
High inventories, especially at Cushing, Oklahoma, the delivery point for the US crude contract, have helped keep US crude prices in check, while North Sea production problems have bolstered Brent.
Brent also received a boost when Saudi Oil Minister Ali al-Naimi said he expected global oil demand to rise between 1.5 million and 1.8 million barrels per day this year - more than forecast by the International Energy Agency.
But the Saudi minister also said he expected prices to stabilise and voiced concern about speculators pushing prices higher. Some analysts said this may have increased investor caution, with Brent prices having scaled $99 a barrel as recently as January 14.
