Oil prices dropped this evening after a US government report showed that supplies of petroleum products are growing as demand weakens in the US.
The Energy Information Administration said that oil supplies increased by 3.4 million barrels last week - twice as much as energy analysts expected. The government also reported that petrol demand averaged 9.1 million barrels per day, down almost 2% from a year ago.
US crude lost $2.01 to $109.04 per barrel, while in London, Brent gave up $1.40 to $121.05.
Energy experts have been saying for months that higher petrol prices are forcing US drivers to buy less fuel.
In its weekly report, MasterCard SpendingPulse said the four-week average of petrol purchases in the US dropped for the sixth consecutive week, compared with a year ago. EIA said the four-week average wholesale petrol demand also has dropped for the sixth straight week.
