Oil Prices Drop Over Stronger US Crude Inventories

Oil prices drop over stronger US crude inventories NEW YORK, Nov. 23 (Xinhua) — World oil prices fell on Wednesday over stronger US crude inventories, which helped to offset concerns about shortfalls in heating fuel supplies this winter.

New York’s main contract, light sweet crude for delivery in January, fell 13 cents to close at 58.71 dollars a barrel.

In London, the price of Brent North Sea crude for January delivery lost 20 cents to end at 56.21 dollars a barrel.

US inventories of crude oil, gasoline and distillate products all rose over the past week, the Department of Energy said.

The higher inventory levels suggest that US oil companies have been able to rebuild their stocks thanks to milder weather, after their operations were battered by hurricanes in August and September.

At Wednesday’s price levels, crude futures have shed almost 18 percent since striking historic highs of 70.85 dollars in New York on August 30 after Hurricane Katrina tore through US Gulf Coast energy facilities.

Prices have since dropped owing in part to unusually warm weather during October and much of November across the northern hemisphere.