World oil prices eased this evening due to signs of weaker than expected energy demand in the United States. A stronger dollar, falling global stock markets and euro zone crisis fears also affected the oil market.
Traders also took profits one day after prices spiked close to eight-month highs on the back of simmering tensions between the West and key crude producer Iran.
This evening in London, Brent North Sea crude was down 10 cents to $113.60 a barrel. US crude dipped 52 cents to $102.70.
The US Department of Energy (DoE) said today that US crude oil reserves jumped 2.2 million barrels in the week ending December 30. That confounded market expectations for a drop of 900,000 barrels, and indicated weaker energy demand in the world's biggest oil-consuming nation.
Stockpiles of distillates, which include diesel and heating fuel, jumped 3.2 million barrels, compared with forecasts for a smaller 600,000-barrel gain. Distillates are a key focus for traders during the northern hemisphere winter, when demand for heating fuel hits a peak.
The DoE added that petrol inventories swelled by almost 2.5 million barrels, which was more than double expectations. The report was published one day later than normal because of the New Year holiday on Monday.
