Oil prices steady after fall

A price fall of nearly 5 from an all-time high of 55.67 began after US government data on Wednesday showed an unexpectedly large rise in crude oil supplies last week.

Profit-taking continued after China on Thursday announced its first rate rise for almost a decade as it attempts to cool runaway economic growth that has played a major role in driving up world energy demand.

8216;8216;We think it8217;s simply an interruption of the trend and not the end of it. Nothing fundamentally has changed,8217;8217; said Kevin Norrish of Barclays Capital.

8216;8216;The Chinese rate rise in its own right is tiny, though it is symbolic,8217;8217; he added.

Other analysts also said the rate rise would have a limited impact and that ongoing shortages in China8217;s power sector would continue to fire the nation8217;s hunger for oil, even though energy demand is not expected to continue at this year8217;s breakneck pace.

8216;8216;The factors that are driving oil demand continue to be in place even with an interest rate hike,8217;8217; said Scott Roberts, Beijing-based analyst for Cambridge Energy Research Associates CERA.