Oil prices slumped today as figures revealed larger than expected gains for energy stockpiles in the US, the world's biggest consumer of crude.
US crude slid $3.24 to $45.34 a barrel, while Brent North Sea crude shed $2.13 to $48.40.
The US government's Department of Energy said that stockpiles of crude increased by 6.7 million barrels last week, far higher than analysts' predictions of a gain of only 700,000 barrels.
Stockpiles of distillates which include heating fuel - currently in high demand during the US winter - grew by 1.8 million barrels in the week to January 2, above market expectations of 800,000.
Ahead of the US data, oil prices had risen back above $50 this week on supply worries owing to deepening political tensions in Europe and the oil-rich Middle East.
Prices had rallied by more than $2 on Monday after Israel sent soldiers into the Gaza Strip. Along with the Israeli-Hamas conflict, prices had also risen because of a Russia-Ukraine gas row curtailing supplies to Europe.
