Aug. 9 (Bloomberg) -- Crude oil slipped from a record $64.27 a barrel earlier today in New York on speculation a terror threat to the U.S. embassy in Saudi Arabia will have little effect on stability of supplies from the kingdom, the world's top producer.

Saudi Arabia has said that King Abdullah, who last week succeeded the late King Fahd, aims to maintain the country's policy of meeting demand for its oil. Oil and gasoline reached records this week as the threat closed the U.S. embassy and consulates in the kingdom. Prices were bolstered after Valero Energy Corp. said a fire at one of its refineries will cut output.

``We know Saudi Arabia has a very good security system'' to protect oil fields, pipelines and loading terminals, said Simon Wardell, an analyst at Global Insight Inc. in London. Concern ``might be a little bit exaggerated. The transition after the death of King Fahd has been remarkably smooth.''

Crude for September delivery fell 6 cents, or 0.1 percent, to $63.88 a barrel on the New York Mercantile Exchange at 10:40 a.m. London time. Oil has still almost doubled from the end of 2003, adding 42 percent in the past year, and earlier today climbed as high as $64.27 a barrel.

Saudi Arabia today denied there was a threat of a terrorist attack in the kingdom, Gulf News reported, citing Interior Ministry spokesman Major General Mansour al-Turki. Saudi security forces have no ``confirmed'' information of a possible attack, the Dubai- based newspaper reported, citing al-Turki.

Brent crude for September settlement slipped 4 cents, or 0.1 percent, to $62.66 on London's International Petroleum Exchange, after earlier reaching a record $63.06 a barrel.

Sitting atop the world's largest oil reserves, Saudi Arabia pumps more than 10 percent of global crude supplies. Steady flows from the kingdom, the largest member of the Organization of Petroleum Exporting Countries, are vital for industrialized and developing economies including the U.S. to China and Japan, the world's three top consumers.

To contact the reporter on this story: Alejandro Barbajosa in London at abarbajosa@bloomberg.net

Last Updated: August 9, 2005 05:42 EDT