Oil prices dipped on Thursday, after leaping to a lifetime high of the day before, fuelled by expectations of thinning United States stockpiles, the falling dollar and geopolitical risks. US light crude for February delivery fell 32 cents to ,30 a barrel in Globex electronic trading by 5.24am GMT. US crude touched a barrel in the previous session.
Oil rose above on Wednesday, bolstered by expectations United States government data would show crude stocks falling for the seventh consecutive week, and as fresh violence in major oil exporter Nigeria revived supply concerns. US light crude for February delivery rose 46 cents to ,44 a barrel by 7.08am GMT, while London Brent crude rose 48 cents to ,33 a barrel.
Oil leaped more than 1% on Thursday, briefly topping for the first time and extending the previous day's 5% jump after an unexpected sharp fall in United States crude stocks and data showing strong economic growth. The rise toward oil's inflation-adjusted peak of ,70 from April 1980 was also supported by US dollar weakness after a Federal Reserve interest rate cut.
Oil prices fell on Monday, on expectations of higher United States refinery production and after remarks by Opec that it is ready to pump more oil if needed. London Brent crude, currently seen as more representative of the world market, slid 36 cents to ,28 a barrel by 4.44am GMT, after easing three cents on Friday.
Cyclones off the coast of Western Australia forced the shutdown on Thursday of almost half the country's oil production as well as a major iron-ore export terminal, with more closures seen as two storms approach oil fields. Cyclone George was upgraded to a category-three storm on Thursday.