Oil prices hover over US$76

Oil prices continue to hover over US$76 a barrel after a big drop in U.S. fuel inventories and drop in output of Alaskan crude (8% of total U.S. output). US crude steadied at US$76.35 a barrel, and London Brent crude settled at US$77.28. Strong U.S. gasoline demand put a strain on domestic stocks last week and gasoline inventories are reported to have fallen 3.2 million barrels. Though relatively robust levels of global crude oil inventories have cushioned the market against disruptions, signals from the market indicate that missing supplies may be gradually eroding that surplus. BP will decide on Friday whether it will shut down production at Prudhoe Bay completely or continue to run the western half of the field. Full production from Prudhoe Bay might not resume until January.