World oil prices fell today as traders reacted to rising US petrol stockpiles and weak demand in the world's biggest energy consuming nation.
New York's main contract, light sweet crude for March delivery, lost 82 cents to $76.92 a barrel. Brent North Sea crude for delivery in March shed 83 cents to $75.49 in London trading.
The US government's Department of Energy showed that petrol reserves rallied by a stronger than expected 3.9 million barrels in the week ending January 15, striking a two-year high. Rising inventory levels are widely regarded as an indication of weakening demand.
However, US crude stocks fell by 400,000 barrels last week, according to the DoE energy report, confounding expectations for a large gain of 1.9 million barrels.
Refineries, meanwhile, operated at 78.4% of capacity last week, their lowest rate in at least two decades apart from the immediate aftermath of a hurricane, the department added.
The report was published this afternoon, a day later than normal, owing to a US public holiday on Monday. The energy release is a key event for the oil market because the US is the biggest energy consumer, followed by number two China.
Prices had risen in earlier trade after sharp falls that were caused by concern about the Chinese economy. Crude futures had sank by almost $1.50 yesterday amid market concerns that a credit squeeze in China and swelling US stockpiles could dampen demand for the key commodity, traders said.
Data released by China today showed that the economy grew 8.7% in 2009, well exceeding the government's target of 8%.
