After rising crude declines to $53 levels as dollar hardens

Crude oil prices edged lower to $53 levels retreating from the previous day's highs when prices climbed 3 per cent in the wake of the US government's plan to clear the banking sector of the accumulated toxic assets.

Sweet light crude for May delivery on the New York Mercantile Exchange fell 53 cents to $53.27 a barrel in early trade as investors booked profits.

The main contract on the New York's futures market had gained $1.70, settling at a four-month peak of $53.80, on Monday.

North Sea Brent crude on the London market was down 70 cents at $52.77 a barrel.

Oil prices soared to their highest levels since November 2008 in intraday trade on Monday, with Nymex crude hitting a peak of $54.05 and Brent touching $53.86.

Oil prices have also been hit by a 1.1 million barrels rise in US crude oil inventories last week amidst rising imports. The dollar also rose on Tuesday, adding pressure to oil prices.

Oil prices have risen from around $33 a barrel in December 2008, partly due to aggressive supply cuts by the Organisation of Petroleum Exporting Countries (OPEC). But prices are still almost $100 below the July 2008 peaks of around $147 a barrel as the global economic crisis continues to affect consumption.