Oil prices touched their lowest level in a month on Friday as funds continued to sell on reduced fears for a summer supply squeeze and uncertainty over whether OPEC will implement planned production cuts.
But concerns over global security, which could threaten oil supplies, and speculation over what OPEC might decide at its production-setting meeting next week, triggered position adjustments ahead of the weekend, bringing prices back up.
US light crude slumped as low as US$34.75 a barrel in morning trade, breaking a support level of US$35, but recovered to trade 8 cents a barrel higher at US$35.59.
London Brent crude futures also slipped early, but were up 13 cents a barrel at US$31.96.
News that saboteurs had set fire to a secondary crude oil pipeline in Iraq -- though not affecting exports -- was a reminder of the risk to the market from terror attacks, traders said.
But mostly, investment fund profit taking drove the price action, making for a third day of losses prompted initially by a big US crude stock build.
"Funds are liquidating here," said Ed Silliere, market analyst at Energy Merchants in New York, though he said there was little news to affect trading.
Reduced fears of tight summer supplies together with a fall in gasoline -- which has so far supported crude prices -- have helped knock New York prices 8 percent lower from March 17's 13-year closing high of US$38.18.
On Wednesday, the US government's Energy Information Administration's weekly energy stockpile snapshot showed crude inventories rising 7.5 million barrels in the week to March 19 to sit comfortably above year-ago levels.
Uncertainty over next week's OPEC meeting has kept trade light.
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