Oil Wavers, Dips Below $81 After US Inventory Report

U.S. crude oil futures prices pared losses and briefly turned positive in choppy trading on Wednesday after a government report said the nation's domestic crude oil stocks fell sharply, against an expectation of a slight rise.

RBOB gasoline futures moved up, lending support to the complex, as gasoline stocks also fell more than expected.

U.S. crude stocks fell 7.29 million barrels in the week to Nov. 12, against a forecast for an increase of 100,000 barrels, and following an industry report on Tuesday that said stocks fell 7.7 million barrels.

Crude futures were under pressure ahead of the report because of concerns China may act to cool inflation and brake its economy and on the euro zone debt worries.

On the New York Mercantile Exchange, U.S. light, sweet crude [CLZ0 80.63 -1.71 (-2.08%) ]for December was last around $80.8. a barrel, in trading from $80.52 to $82.67.

Prices were down about 48 cents when the EIA report was released.

Earlier in the day, the dollar held near seven-week highs against the euro [EUR=X 1.3528 0.0041 (+0.3%) ] amid Ireland's debt woes.

Ireland committed itself on Wednesday to working with a European Union-IMF mission on urgent steps to help its stricken banking sector, a process that could lead to a bailout despite Dublin's deep reluctance.

A team from the European Commission, the International Monetary Fund and European Central Bank will travel to Ireland on Thursday to examine what measures may be needed if Dublin decides to seek aid, euro zone finance ministers said.