Oil prices dipped today after jumping to a lifetime high of $100 the day before amid expectations of thinning US stockpiles, the falling dollar and geopolitical risks.
US light crude for February delivery slipped fell 41 cents to $99.21 a barrel earlier this morning. US crude traded a single lot at $100 a barrel yesterday, with gains fuelled by new-year fund buying and violence in Nigeria and Algeria.
London Brent crude shed 39 cents to $97.45.
Oil prices climbed 57 per cent in 2007, and many fund managers are preparing for another year of volatile and rising commodity prices. Gold also hit a record high yesterday.
Despite oil rocketing to $100, the White House said it would not open up the nation's emergency crude reserves to bring down prices while Libya and Qatar said Opec was powerless to halt the rally.
The focus later today will shift to the dwindling state of US crude oil stocks, which were expected to have fallen by another 2.2 million barrels last week, a seventh successive draw.