November 02, 2006	Thursday	Shawwal 9, 1427

LONDON, Nov 1: World oil prices dropped on Wednesday as the market deemed US energy stockpiles to be sufficient while remaining sceptical about a cut in crude output by Opec, analysts said.

Traders also tracked events in the North Sea off Norway, the world's third biggest exporter of crude oil, owing to stormy weather that had caused problems on platforms.

British energy giant BP said it had been forced to shut its Valhall platform owing to storm conditions, causing a halt to production totalling 80,000 barrels per day, as well as the evacuation of staff.

Meanwhile an oil platform with 75 people on board that broke loose from a tugboat also in the North Sea off Norway in severe weather was still adrift a day later, but operators of the rig said they hoped to reattach it to a tug later on Wednesday.

New York's main contract, light sweet crude for delivery in December, slid 58 cents to $58.15 per barrel in pit trading.

In London, Brent North Sea crude for December delivery shed 76 cents to $58.27 per barrel in electronic trading.

US crude oil stockpiles rose last week but reserves of refined products fell, government data showed on Wednesday.

“On the surface, the stocks data look very good (for higher prices) but when you dig into the details, you see that the draws in products happened on the west coast, miles away from the main market in the east,” Investec analyst Bruce Evers said.

“People were looking for the north eastern market to show a drawdown which wasn't the case, so prices are going into decline again. ”The Department of

Energy said inventories of crude oil rose 2 million barrels to

334.3 million in the week ended October 27. Analysts had expected a rise of 2.6 million barrels.

Levels of distillate products, such as heating oil and diesel fuel, were down 2.7 million barrels to 141.3 million over the week. That compared with a smaller forecast fall of 1.2 million barrels.

Gasoline stocks fell 2.8 million barrels to 204.6 million, against expectations of a decline of just 925,000 barrels.—AFP