Oil prices fell today after a cold snap in the United States failed to trigger a long-awaited boost in fuel demand in the world's largest heating oil market.
US crude futures fell 52 cents to $54.52 a barrel late this evening, retracing some of Tuesday's $2.46 gain. London Brent crude eased 35 cents to $54.75.
Icy winter weather finally arrived in the US Northeast last week, but demand remained subdued. US distillate demand, which includes heating fuel, fell 4.1% in the past four weeks, compared with a year ago, the Energy Information Administration said today.
Distillate stocks rose by 700,000 barrels, confounding analysts' expectations for an 800,000-barrel decline.
Oil prices jumped 4.7% on Tuesday, the biggest daily gain since 20 November, on news the United States will increase its emergency oil reserves.
The Bush administration said it planned to add 11 million barrels to the country's Strategic Petroleum Reserves this spring at a rate of around 100,000 barrels per day.
