World oil prices slid today after official data revealed a strong jump in stockpiles of US motor fuel last week.
Losses were limited, however, by lingering tensions over major oil producer Iran, with world powers gathered in London to try to agree on a strategy aimed at forcing the Islamic republic to stop enriching uranium.
New York's main contract, light sweet crude for delivery in July, shed 41 cents to $71.35 a barrel in pit trading. In London, Brent North Sea crude for July delivery dropped 40 cents to $70.60 a barrel in electronic trading.
US stockpiles of crude oil fell over the past week but closely watched levels of petrol increased, the latest government figures show.
The Department of Energy said crude oil reserves declined by three million barrels to 343.9 million in the week to May 19, three times the fall expected by analysts.
But reserves of petrol, which are in focus ahead of the US summer driving season starting next week, rose 2.1 million barrels to 208.5 million. That was more than the predicted increase of 1.3 million barrels.
The US is gearing up for its peak-demand driving season, beginning late May, which sees Americans taking to their cars on holidays.
The DoE also said that inventories of distillates, which are used to make diesel and heating oil, rose by 2.5 million barrels to 117.1 million last week. Market watchers had foreseen a much smaller rise of 550,000 barrels.
The drop in oil prices came a day after they closed up nearly $2 in New York, as forecasts of a potentially devastating Atlantic hurricane season prompted renewed fears of damage to US Gulf Coast petroleum installations.
Last year, Hurricane Katrina devastated oil refineries and rigs along the US Gulf Coast, sending oil prices to then-record high points.
