Oil slips back in Asia after strong rise on renewed supply worries

Oil prices inched lower Friday in Asia, after rising overnight the first time in four sessions as investors began to question if supplies of crude and products are sufficient for coming winter demand.

Light, sweet crude for November delivery slipped 18 U.S. cents to US$81.26 a barrel in Asian electronic tradingon the New York Mercantile Exchange by mid afternoon in Singapore. The contract rose $1.50 to settle at $81.44 a barrel Thursday in New York.

"There's been some very minor profit-taking today but it's just part of the volatile trade in oil markets, " said Victor Shum, a Singapore-based energy analyst with Purvin & gertz.

"The crude oil market remains fundamentally tight in the fourth quarter and prices should hold steady above the $80 mark."
the U.S Energy Department reported Wednesday that crude inventories rose by 1.2 million barrels last week, while include heating oil, fell by 1.2 millions barrels. Traders say the increase in crude supplies is inadequate, especially as winter approaches.