Oil prices fell today as a US government report showing an expected decline in lean winter heating fuel stocks was not enough to jolt the market out of a steep recent slide.
US light crude oil futures were down 27 cents at $41.50 a barrel. London's Brent crude fell by $1.65 to $38.42, catching up with heavy US losses earlier this week when the London market was closed.
Prices fell after the US Energy Information Administration said that stocks of distillate fuel, including heating oil and distillate fuel, dropped by 900,000 barrels last week to 119.1 million barrels.
Lower-than-normal temperatures last week helped pull down heating oil stocks, which are more than 12 per cent below last year.
"There were really no significant surprises. The distillate number was in line with street ideas," said Jim Ritterbusch, President, Ritterbusch and associates.
Prices have fallen heavily in recent sessions as mild weather forecasts ease supply fears.
Oil prices are still more than $9 higher than the start of the year, but some $14 below record highs hit in late October, as signs grow that this year's price rally is eroding fuel demand growth.