Oil prices dropped heavily in New York today amid much smaller losses in London, as traders kept a close eye on weather conditions in the northern hemisphere.
In London, the price of Brent North Sea crude for January delivery fell 30 cents to $54.71 a barrel in electronic dealing.
New York's main contract, light sweet crude for delivery in January, dived $1.56 to $57.15 a barrel compared to Wednesday's closing price. New York's main contract fell heavily owing to traders in the US setting out to mirror losses for Brent late last week after the two day Thanksgiving Holiday.
Oil prices fell last week, with markets deeming there to be adequate supplies of heating fuel during the northern hemisphere winter despite the onset of freezing weather in the region.
Elsewhere traders were digesting comments by OPEC president Sheikh Ahmad Fahd al-Sabah, who said that oil producers would raise their production capacity to ensure continuity of crude supplies despite efforts by world consumers to restrain demand.
