Oil prices edged lower today as dealers took stock of the previous day's dramatic rally driven by a halt in supplies from Venezuela, the world's fifth-largest exporter.
The oil industry shutdown aimed at forcing President Hugo Chavez to resign has compounded market fears of fuel shortages this winter, already heightened by fears of war in Iraq.
International benchmark Brent crude oil slipped by nine cents to $27.97 a barrel by early afternoon in London, having soared $1.17 yesterday.
World oil prices have risen by 20 per cent in a month because of Venezuela's stoppage and fears of war in Iraq.
The South American country, which normally supplies 14 per cent of US imports, is pumping less than a quarter of its normal output and exports have stopped.
The Venezuelan government is wrestling to loosen the protests choking the oil industry and has been bolstered by a message from the army condemning the strike.
Strike leaders said they were continuing the shutdown, which has also disrupted other basic industries, closed shops and business and caused creeping food and petrol shortages.
OPEC states offered to replace Venezuelan supplies if the strike dragged on, but traders said they have seen no signs of OPEC making up for the loss.