U.S. oil draws back from record $99 highs

New York -- U.S. oil prices drew back from record highs of more than $99 a barrel Wednesday amid fears fuel supplies would tighten during the U.S. Northeast winter.

The U.S. dollar fell to a record low of $1.4855 against the euro on the foreign-exchange market before gaining strength. The weaker dollar increased oil's attractiveness to international buyers. Oil is a dollar-denominated commodity.

Light, sweet crude for January delivery rose 33 cents, or 0.34 percent, to $98.36 a barrel in midmorning trading on the New York Mercantile Exchange. It had been as high as $99.29 a barrel in electronic trading overnight, breaking the $98.62 intraday record set last week.

Natural gas gained 4 cents, or 0.53 percent, to $7.52 per 1,000 cubic feet.
Heating oil added 0.34 cents, or 1.3 percent, to $2.6935 a gallon.

Reformulated-gasoline blendstock for oxygen blending added 0.45 cents, or 0.18 percent, to $2.456 a gallon.

AAA said the average U.S. retail regular unleaded gasoline price was $3.089 a gallon, down 0.1 cent from Tuesday's $3.09 a gallon.

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Copyright 2007 by United Press International.