World oil prices tumbled this evening, slumping further after recent data highlighted weak energy demand in the US, the world's biggest economy.
Brent North Sea crude lost $2.52 to $65.47 a barrel, while US crude dropped $2.64 to $66.33. Prices had already fallen almost $3 on Wednesday in reaction to a large jump in US crude oil inventories.
The US government's Department of Energy (DoE) revealed that crude reserves rallied 2.8 million barrels in the week to September 18, confounding analysts' expectations for a decline.
Crude prices also sank today as the dollar strengthened against other currencies following fresh falls in stock markets, sparked mainly by disappointing US housing figures.
The DoE said that US stocks of distillates, which include heating fuel, rose by three million barrels last week. Distillates are being closely monitored ahead of the northern hemisphere winter when demand for heating fuel peaks.
Energy demand plunged after the global economy slipped late last year into its worst recession since the 1930s. This sent oil prices tumbling from historic highs of more than $147 in July 2008 to around $32 in December of that year. Prices have since recovered somewhat but investors remain concerned over the pace of the upturn.
