Oil prices returned near to record highs this afternoon after a sharp fall in US crude and fuel stocks and bullish Chinese economic data, brought fundamentals in the world's top two oil consumers back to the fore.
US crude was up 50 cents to $111.37 a barrel by 12.50pm, having earlier risen to one cent off the $112.21 record hit in the previous session.
London Brent crude was up 58 cents at $109.05 a barrel, having set a new record at $109.98.
Saudi Oil Minister Ali al-Naimi told reporters in Paris the market was still well supplied and record prices were not related to any lack of oil.
"I am not going to pull back. I'm not going to dump crude on the market," Mr Naimi said when asked whether Saudi Arabia might change its output.
Despite pleas by consuming nations for OPEC to raise oil production to help cap rising oil prices, its members insist the markets remain well supplied.
Inventory data from the United States, the world's largest oil consumer, pushed prices up to new records on Wednesday after it showed US crude oil inventories fell 3.2 million barrels, countering earlier expectations for a build.
Gasoline and distillate stocks also fell by more than had been forecast.
Adding to the bullish brew today, China revised up its 2007 GDP growth by 0.5 per cent points to 11.9 per cent and its currency traded at its strongest level against the dollar in over a decade, underlining China's growing economic power and implying undimmed oil demand.