Oil prices were steady today as traders waited for fresh data later in the day on the health of US fuel stockpiles.
US light crude for September delivery was one cent to $40.45 a barrel after falling $1 yesterday. In that session the expiring August crude contract briefly touched a six-week peak at $42.30, just 15 cents off the all-time high for US crude futures at $42.45, before falling back sharply.
London's Brent crude rose 15 cents to $37.16 a barrel.
Dealers said yesterday's sell-off was led by a steep fall in US gasoline, which tumbled 3.5 per cent to break below $1.25 a gallon, on perceptions that supplies were meeting summer demand.
US gasoline consumption rises to a peak in the summer holiday months, accounting for roughly 12 per cent of global oil demand, and is a barometer for overall strength in demand.
Low inventories in the second quarter had prompted concerns of a supply crunch.
"The feeling is we're getting through summer without any major supply issues," said Mr Tom Bentz, analyst at BNP Paribas.
US gasoline inventories are predicted to show a decline when the government Energy Information Administration (EIA) releases its weekly oil stocks report this afternoon.