Oil prices inched higher today to regain some of their losses a day ago when an unexpectedly large rise in US distillates inventories soothed some anxiety over supplies of diesel and heating oil.
US light sweet crude gained 14 cents to $52.68 a barrel in early trade after a loss of $1.22 in New York yesterday. Oil has fallen 4.2 per cent from a six-week closing high of $55.03 struck last Friday.
Brent crude oil shed 6 cents to $52.05 a barrel, extending the $1.02-drop on Wednesday.
US stocks of distillates - heating oil, diesel, and jet fuel - rose a larger-than-expected 1.3 million barrels last week as refiners focused their output on such products, the US Energy Information Administration's report showed yesterday.
The build eased fears of a possible winter supply crunch for middle distillates in the face of robust demand from the United States, China and Europe.
Such fears had led to a nearly 19 per cent spike in US heating oil futures since mid-May.