NEW YORK: Oil prices slipped Monday in thin, choppy trade as a sell-off in silver from near record highs lifted the dollar off its lows, prompting a bout of profit-taking in crude. Silver surged as much as 8 percent in record volumes for US futures before pulling back sharply when a failure to pierce the all-time high from 1980 unleashed a wave of technical selling. Silver's retreat helped trigger profit-taking for oil. US crude had hit the highest level since September 2008 on inflation fears, a weaker dollar and as investors eyed the conflict in Libya and violence in Yemen, Syria and Nigeria. The dollar index, measuring the greenback against a basket of currencies, bounced into positive territory after silver turned back. Brent crude for June fell 33 cents to settle at $123.66 a barrel, after reaching $124.75. US crude for June dipped 1 cent to settle at $112.28, retreating from an early $113.48 peak, the highest intraday price since September 2008, but bouncing off a low of $111.08. US oil's intraday peak eclipsed the 2011 peak from April 11 by just 2 cents. Trading volumes were damped by the Easter Monday holiday in Europe, with volumes for Brent and US crude on track for the lowest level since late December, according to Reuters data. The market was also awaiting the US Federal Reserve's two-day policy meeting this week, including a post-meeting news conference by Chairman Ben Bernanke scheduled for Wednesday. Oil prices have seesawed in recent weeks, buoyed by geopolitical supply concerns and dollar weakness but pressured by worries that oil demand will falter due to high prices. US gasoline futures also lent some support Monday, settling at their highest level since July 2008 for a second straight session ahead of the summer driving season. In London, Brent crude lost 33 cents to settle at $123.66 per barrel on the ICE Futures exchange. Gas pump prices continued to climb for the 34th straight day, to a national average of more than $3.86 per gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular has increased 32 cents since March 22. The average price is now a dollar more per gallon than a year ago. Threats to oil supply in Africa and the Middle East helped boost crude early. Libya's conflict continued as NATO forces flattened a building in Muammar Gaddafi's compound. Syria sent troops and tanks to quell protests, security forces in Yemen fired on protesters and more than 500 people were killed in post-election violence in Nigeria. OPEC has signaled that members with spare capacity are ready to pump above agreed limits if needed. But despite Libya's civil war and other potential supply threats, Gulf delegates told Reuters the group is unlikely to formally change output targets at a June meeting.
