Gas price row deepens as oil eases towards $48

London: Oil fell slightly yesterday but drew support from cold weather and an escalation in the Ukraine-Russia price dispute that has choked off gas supplies and increased demand for refined oil products.

The market awaits weekly inventory data from the US energy department released late yesterday for the latest indication of demand for oil from the world's biggest fuel consumer. Crude inventories were expected to show a jump in stockpiles.

US crude for February delivery was down 22 cents a barrel at $48.36 (Dh177.62), while London Brent rose 27 cents to $50.80.

"We're down a bit but not significantly considering the big swings in prices recently," said Christopher Bellew at Bache Commodities.

Bellew added, "It appears prices are still being supported by colder weather and to some extent the Ukranian crisis."

Russia's deepening row with Ukraine over natural gas prices triggered supply disruptions to parts of Europe and increased demand for gas oil, offering support to crude oil prices.

It echoes a similar row three years ago that raised questions about Russia's reliability as an energy exporter.

A US Energy Information Administration report due later is likely to show fuel stocks rising as demand slows, with crude oil stocks seen up 900,000 barrels last week, and distillates and gasoline supplies also expected to have increased.

Further clues about future demand from the world's largest oil consumer will come when US Labour Department unveils December non-farm payroll and unemployment data on Friday. Oil prices have risen nearly 50 per cent since a December 19 low of $32.40.