World oil prices weakened this afternoon as the easing cold snap in the northern hemisphere was expected to dampen demand for heating fuel.
Brent North Sea crude for delivery in March dropped $1.68 to $75.95 a barrel in London trade. New York's main contract, light sweet crude for February delivery, shed $1.86 to $77.16 a barrel.
Crude futures had recovered yesterday after a five-session losing streak as oil cartel OPEC had forecast modest growth in world crude demand this year.
Analysts said that an upcoming government report on US energy stockpiles was expected to show an increase, which would indicate weaker demand. The inventories report is due for release tomorrow, a day later than normal owing to a US bank holiday on Monday.
Elsewhere this week, market participants will digest economic growth data in China, which is the world's second biggest energy consuming nation after the US.
The OPEC oil producers' cartel said yesterday in its January report that world oil demand in 2010 was forecast to grow by 0.8 million barrels per day (bpd) to average 85.1 million bpd.
The Organisation of Petroleum Exporting Countries, which is headquartered in Vienna, pumps around 40% of the world's oil supplies.
