Oil prices sank this evening after US inventory figures showed a greater than expected rise in crude oil stocks last week, with imports surging despite OPEC output cuts and weather disruptions in Louisiana and Alaska.
New York crude contracts for January were down $1.62 at $58.55 a barrel, while London Brent fell $1.41 to $58.98. Both contracts had made strong gains on Tuesday.
The US Energy Information Administration (EIA) said crude oil stocks rose by 5.1 million barrels last week to total 341.1 million - well above average levels. The market expected a gain of around 600,000 barrels.
The gains came amid a rise of one million barrels a day in imports in a week when bad weather led to supply disruptions at the Louisiana Offshore Oil Port (LOOP) and at the Valdez export terminal in Alaska.
The EIA also reported a 1.2 million barrel fall in distillate stocks, which include the key winter heating oil fuel. The fall, which leaves stocks at above average levels, was in line with market expectations.
