Light, sweet crude for January delivery dipped to US$94.13 a barrel in Asian electronic trading by late morning in Singapore. The Nymex crude contract gained US$4.37 on Wednesday to settle at US$94.39 a barrel. In London, January Brent crude dipped to US$93.50 a barrel on the ICE Futures exchange.
Oil prices dipped after they spiked by almost 5% in the previous session bringing crude oil on the New York Mercantile Exchange to its highest close since November 27. This rise in prices was due to unexpected declines in U.S. crude and heating oil inventories, and also following the Federal Reserve's announcement of a plan to help banks through the credit crisis.
As per a weekly inventory report from the Energy Department's Energy Information Administration, crude supplies fell 700,000 barrels during the week ended Dec. 7, contrary to the 100,000 barrel increase expected by many analysts. The Federal Reserves' plan in conjunction with central banks in Canada and Europe will create a temporary auction facility to make funds available to banks and set up lines of credit for additional resources.