Oil prices extended gains above $91 a barrel today in light pre-holiday trade as a steep fall in crude stockpiles was balanced by worries over the US economy.
US light crude for February delivery rose 40 cents to $91.46 a barrel earlier today, recouping the 18-cent loss in New York yesterday.
Activity was very thin as most traders have squared their books ahead of year-end holidays. Brent crude for February gained 36 cents to $91.24 a barrel.
Oil has retreated from a record high of $99.29 one month ago, on signs that a decelerating US economy is undermining oil demand in the world's biggest consumer. Opec's output curbs and falling stockpiles have helped limit the losses, however.
Prices were also restrained by the latest in a series of forecasts calling for warmer-than-usual US winter weather, which will curb demand for heating fuel in the northeast.
US crude oil stockpiles tumbled to their lowest level in nearly three years last week, having fallen about 16 per cent since late June and are about 9 per cent below a year ago, pressured in part by Opec output restraints, data showed.
But the slide in stockpiles could be reversed in coming weeks as foul weather that had disrupted shipping on the Gulf Coast eased, experts said.
