Oil steadied today after a steep drop triggered by investors' realisation that ample US fuel stockpiles would see the country comfortably through winter.
Prices fell nearly $3 last week after rising inventories of US natural gas and the highest heating fuel stocks in nearly seven years reassured consumers of adequate winter supply.
US crude was up 41 cents at $63.74 a barrel earlier, down nearly 20 per cent from a mid-July record high of $78.40.
London Brent rose 37 cents to $63.70. From peak to trough, oil has fallen more than $16, the steepest fall since the first Gulf War in 1991. But deep $15 corrections in the autumns of 2004 and 2005 were followed by new peaks within about half a year.
Analysts say a fall below $60 will spark talk of production cuts from Opec. The 11-member exporter group agreed last week to keep output steady but left the door open to cuts later.