Oil edged down on Tuesday as worries about weakening oil demand overshadowed fears that the Atlantic hurricane season could threaten supply. United States light crude for July delivery fell 16 cents a barrel to ,60 by 6.38am GMT, reversing Monday’s 41-cent gain as the start of the hurricane season stirred concerns.
Oil held above a barrel on Wednesday, within sight of the previous session’s record high, supported by a weak United States dollar and concern about supplies. Attention will shift later to a US government report expected to show that crude inventories rose for a fifth straight time last week while petrol and distillates supplies also increased.
Oil set a new record high of a barrel on Tuesday, the latest spurt in an advance that has seen prices double over the past 12 months. Supply disruptions in Nigeria, where a strike and attacks by militants has hit production, have helped boost a market that is nervous about any threats to supply.
Global stocks fell and the dollar tumbled on Monday as a fire sale of Bear Stearns and an emergency Federal Reserve cut of a key lending rate sparked fears that a worldwide credit crisis will claim more casualties. European shares sank more than 3%, following a sell-off in Asia where Japan’s leading indexes shed more than 3,5%.