World oil prices slipped further on Thursday after plunging more than $1.50 a barrel the day before on an unexpected rise in US crude stockpiles.
New York's main contract, light sweet crude for delivery in February, fell 24 cents to $44 a barrel on Thursday evening. The contract plunged $1.52 to close at $44.24 yesterday in the wake of the US inventory data.
In London, Brent North Sea crude for February lost five cents to $40.59. It closed down $1.73 to $40.64 on Wednesday.
US crude oil inventories rose 2.1 million barrels to 295.9 million in the week ending December 17, the Department of Energy said yesterday, defying expectations of a decline.
Distillates - mostly heating fuel and diesel - rose 600,000 barrels to 119.9 million, surprising analysts who had predicted a drop. Heating fuel stockpiles were flat at 49.9 million. Petrol inventories surged 1.8 million barrels to 211.4 million.
The latest US Energy Department report came as the US braced itself for possibly more severe winter weather, particularly in the northeast region, which accounts for 80% of the country's total heating oil consumption.
