February 16, 2007	Friday	Muharram 27, 1428

LONDON, Feb 15: World oil prices dropped heavily for a second day on Thursday, falling below $57 per barrel in London as the market continued to focus on the healthy state of US energy stockpiles.

Prices had risen slightly earlier on Thursday owing to a technical rebound, according to analysts, and as the Organisation of Petroleum Exporting Countries maintained its estimate for the growth of oil demand in 2007.

In London, the price of Brent North Sea crude for April delivery shed 79 cents to $56.64 per barrel in electronic deals.

New York's main oil futures contract, light sweet crude for delivery in March, lost 78 cents to $57.22 per barrel in pit trading.

“The cold hard winter is coming to an end, so winter season demand is weakening as US forecasts predict warmer temperatures over the next 10 days,” said Victor Shum, senior principal at Purvin and Gertz in Singapore.

“In the near-term, I expect trading to be below $60, range-bound from 55 to $60,” he added.

Crude futures had already tumbled on Wednesday to close down more than a dollar following a smaller-than-expected decline in stockpiles of US distillates.

Reserves of distillates, including heating fuel, fell by three million barrels to 133.3 million in the week ending February 9, according to the Department of Energy (DoE).

Analysts had expected a larger drop of four million barrels amid freezing weather in the United States, the world's biggest energy consumer.

Traders were also digesting the latest Opec forecast regarding oil demand growth. The oil producing cartel said it was maintaining its estimate for the growth of oil demand in 2007 at 1.5 per cent, in line with its previous monthly report.

Opec said it expected world oil demand to grow by 1.2 million barrels per day (bpd) or 1.5 per cent in 2007, after unusually warm temperatures in the northern hemisphere winter dropped recently. —AFP