US oil prices recede after piercing 50 dollars a barrel

NEW YORK, Nov 23 (AFP) - US oil prices retreated in volatile trading Tuesday after piercing the 50-dollar-a-barrel mark for the first time in almost three weeks on supply jitters ahead of the US winter, traders said.
Light sweet crude oil for January delivery on the New York Mercantile Exchange (Nymex) closed up 30 cents at 48.94 dollars a barrel Tuesday from Monday.
However, in earlier trading New York oil had broken through 50 dollars to strike 50.25 dollars, its highest level since November 4.
In London, Brent North Sea crude oil for January delivery rose seven cents to 44.45 dollars a barrel.
Traders said prices had spiked over concerns about US oil inventories as the winter closes in on the continental United States.
"Everybody will be looking at inventories for direction ... if (there is) any draw (prices) could easily go back and test 50 dollars and perhaps go a bit higher," said Refco analyst, Marshall Steeves.
The US government and the industry group, the American Petroleum Institute, are due to report weekly US stock inventories Wednesday.

11/23/2004 21:24 GMT - AFP