Oil speculators took profits from a four-day rally today, but the potential for supply disruptions in a market already fearing a winter fuel crunch kept prices near record highs of almost $60 a barrel.
US light, sweet crude for July dropped 57 cents to $58.80 a barrel. The expiring contract gained 90 cents in New York yesterday, having hit a record peak of $59.52 a barrel.
August crude - which becomes the top month tomorrow - dropped 63 cents to $59.35 a barrel. London Brent crude weakened 50 cents to $57.82 a barrel.
Oil prices have surged more than $12, or 26 per cent, over the past month as speculators bet that refiners worldwide will struggle to keep up with fuel demand this winter.
Concerns over the stability of supply from key producer nations has also resurfaced recently, adding to the market's anxiety and helping prices to a four-day, $4-plus rally.
In Norway, the world's number three oil exporter behind Saudi Arabia and Russia, mediators are working to avert a potential strike by 500 technicians that could halt 920,000 barrels per day of oil output by top oil and gas firm Statoil.