April 24, 2008	Thursday	Rabi-us-Sani 17, 1429

LONDON, April 23: Oil prices dipped on Wednesday, after spiking to record levels near $120, as traders digested a mixed report on US stockpiles amid mounting international concern over soaring energy costs.

New York’s main oil futures contract, light sweet crude for delivery in June, shed 47 cents to $117.60 a barrel. The May contract had struck a record high $119.90 before expiring on Tuesday.

London’s Brent North Sea crude for June delivery lost 25 cents to reach $115.70 on Wednesday, after hitting a lifetime peak of $116.75 on Tuesday.

The US government’s Energy Information Administration said on Wednesday that American gasoline or petrol reserves sank by 3.2 million barrels in the week ending April 18.

That was heavier than analysts’ consensus forecasts for a drop of 2.0 million.

Traders focus on gasoline supplies ahead of the peak demand season that starts in May when many Americans take to their cars for their summer holidays.

However, the EIA added that crude oil stockpiles grew by 2.4 million barrels. That was better than market expectations for a gain of 1.5 million.

“The build in crude was a little higher and the draws in the products were somewhat greater than anticipated,” said Citigroup analyst Tim Evans.

Prices had scaled historic heights on Tuesday as an attack on crude pipelines in Nigeria further tightened global energy supplies, which are under intense pressure with crude cartel Opec refusing to raise short-term output.

Additional support came from the weak US currency, which makes dollar-priced oil cheaper for foreign buyers and stimulates demand.

“Oil has eased back to below $118 a barrel amid profit taking after crude prices have gained just over 18 per cent this month,” said Sucden analyst Nimit Khamar in London on Wednesday.—AFP