LONDON, May 10: World oil prices fell on Wednesday after news that US energy inventories rose last week, but the decline in oil prices was limited by concerns over the Iranian nuclear crisis, analysts said.

In London, Brent North Sea crude for June delivery lost 14 cents to $70.94 per barrel in electronic trade.

New York’s main contract, light sweet crude for delivery in June, shed nine cents to $70.60 per barrel in pit deals.

The price of crude had closed almost a dollar higher on Tuesday after the United States dismissed a letter from the Iranian president that failed to address the crisis over his country’s nuclear ambitions.

Crude futures receded Wednesday after the US Department of Energy (DoE) said that US gasoline (petrol) stocks rose by a robust 2.4 million barrels to 205.1 million in the week to May 5. Analysts had forecast a drop of 1.0 million barrels.

“The report was slightly bearish,” noted Societe Generale analyst Deborah White.

“I was encouraged to see the US gasoline stocks building 2.4 million barrels, which is roughly twice as much as we expected.”

However, US motor fuel stocks are still 3.8 per cent lower than at the same stage last year heading into the peak-demand US summer driving season.

Gasoline reserves are in focus ahead of the driving season beginning at the end of May, when many Americans take to their cars for vacations.

The DoE added that crude oil reserves in the US increased by 300,000 barrels to 347.0 million over the week.—AFP