Oil pulls back after hitting 15-month highs

Global oil prices pulled back Thursday on profit-taking after striking a fresh 15-month high boosted by US Federal Reserve chief Ben Bernanke's pledge to keep up the Fed's easy money policy.

At the market close in New York, the US benchmark contract West Texas Intermediate crude for August delivery was at $104.91, down $1.61 from Wednesday.

In London, Brent crude for August delivery lost 78 cents to $107.73.

Earlier, though, both surged with the price differential, some $23 in February, narrowing to about $1.50.

WTI hit a high of $107.45 a barrel -- a level last seen in late March 2012 -- while Brent reached $108.93.

The fall was the first big pullback in two weeks of gains driven in part by an escalation in the Syrian conflict and the fresh uprising and military coup in Egypt.

But the gains were bolstered Wednesday by an unexpectedly large fall in US commercial crude stockpiles, as well as Bernanke's forceful comments underscoring the Fed's commitment to rock-bottom interest rates for more than another year.

"The spike in oil is driven by three things; optimism over improving economic conditions in the United States, fears of escalation in Egyptian unrest, and lower US inventory levels," said analyst Ishaq Siddiqi at trading firm ETX Capital.