December 06, 2006	Wednesday	Ziqa'ad 14, 1427

LONDON, Dec 5: World oil prices slid on Tuesday, erasing earlier gains as traders weighed concerns over a further Opec output cut against forecasts of warmer weather in the United States, a major consumer of heating fuel.Crude futures had tumbled about a dollar on Monday on prospects of higher temperatures in the US, which could reduce demand during the country's winter.

New York’s main contract, light sweet crude for delivery in January, shed 19 cents to $62.25 per barrel in pit trading.

In London, Brent North Sea crude for January delivery lost 17 cents to $63.28 in electronic deals.

“There was little fresh oil-specific news to explain the price decline, which reflects continued unease over US growth prospects as well as easing over the short-term weather outlook,” said Barclays Capital analyst Kevin Norrish.

“The latest US weather outlook sees temperatures warming to above normal this weekend and staying high for up to two weeks thereafter.”

Earlier on Tuesday, crude futures had risen, helped by forecasts that US data to be published on Wednesday would show a fall in stocks of US heating fuel, analysts said.

Analysts are meanwhile forecasting that stocks of US distillates, which include heating fuel, fell by 950,000 barrels last week owing to cold weather in the north-eastern United States.—AFP