AFP reported that New York oil prices fell after hitting fresh 5 month high levels following a deal that reverses the build up of crude stockpiles in the United States. New York's main contract, West Texas Intermediate light sweet crude for delivery in December reached USD 103.37 per barrel the highest level since June 1st 2011. It later retreated to USD 102.36 down 23 cents compared with Wednesday's close. Brent North Sea crude for delivery in January slid USD 1.86 to USD 110.53 per barrel in London deals as traders there focused on the risk of contagion from the eurozone debt crisis and its impact on European energy demand. New York oil prices first surged to 5 month highs on Wednesday following the announcement of a pipeline sale. Canadian company Enbridge on Wednesday bought ConocoPhillips' 50% stake in the 330,000 barrel per day Seaway pipeline which runs between the US Gulf of Mexico coast and the Cushing, Oklahoma oil storage hub. Enterprise Product Partners which owns the other 50% of Seaway said that it would reverse the pipeline to move oil to the Gulf coast refining hub from Cushing starting in mid 2012. This is expected to further narrow the broad gap between London and New York oil prices caused by high stockpiles in Cushing. Ms Amrita Sen analyst of Barclays Capital said that "The reversal of the Seaway pipeline has already resulted in a significant narrowing of the WTI Brent spread, due to the notion that the so called US Midwest glut will now be resolved."

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