World oil prices fell sharply today after OPEC lowered its estimate for demand growth and the US government revealed a surprise increase to crude stockpiles.
New York light crude traded down $1.71 at $92.38 a barrel this evening after dipping as low as $91.86 earlier.
London Brent crude fell 86 cents to $90.50 a barrel.
OPEC lowered its estimate for world oil demand growth in 2007, arguing that high petrol prices were reducing consumption.
It came as OPEC ministers were defiant in the face of pressure from consumer nations to raise oil output, saying the market was amply supplied and that blame for near $100 prices lay outside the cartel.
Last week, New York's main contract struck an historic peak of $98.62 and Brent raced to an all-time high of $95.19 on fears of tight energy supplies in the US, the world's biggest energy user.
The US government today revealed that domestic stockpiles of crude had jumped by 2.8m barrels to 314.7m last week. Analysts had forecast a fall of 750,000 barrels.
However, inventories of distillates dropped by 2.0m barrels last week to 133.4m. Analysts had predicted a fall of only 500,000 barrels.
The distillates report is being closely watched as the US heads into the northern hemisphere winter, when demand for heating fuel typically peaks.
