US oil prices were up slightly this evening after a volatile day which saw it spike $1 on strong US jobs data and reports that the Saudi King had died, only to fade after reports Egypt's leader Hosni Mubarak would step down.
In London, Brent crude was down in choppy trade as the US dollar climbed and OPEC reported a boost in January output.
Brent was down by 68 cents at $101.13 a barrel, having earlier risen by over $1 to $102.88 on reports that the Saudi king might have died. Saudi sources denied the reports.
US crude was up 21 cents at $86.92 a barrel after having risen earlier by $1 to as high as $87.77 as US jobless claims fell to their lowest levels in more than two years.
Meanwhile, media reported that Egypt's president of 30 years may step down and the situation in the country would be clarified soon.
Higher OPEC production also weighed on prices after the group's monthly report said its oil output rose to 29.72 million bpd in January, the highest level since December 2008.
But oil demand growth forecasts also rose, as both OPEC and the International Energy Agency adjusted their outlooks for consumption upwards.
OPEC revised global demand for OPEC crude up by around 400,000 bpd to 29.8 million bpd. The group warned that oil prices would act to balance out demand. The IEA said oil demand would hit a record 90 million barrels per day (bpd) by the fourth quarter of 2011 in its monthly report.
But the agency also added that rising OPEC production and comfortable oil stocks in developed economies should limit a further spike in oil prices.
