LONDON, July 23: Oil prices fell further on Wednesday as traders digested stronger-than-expected gasoline (petrol) reserves in the United States, the world’s biggest crude consumer, analysts said.

The market also declined as Hurricane Dolly looked set to miss US energy installations in the Gulf of Mexico, they added.

New York’s main contract, light sweet crude for September delivery, dropped $1.79 to $126.63 per barrel.

London’s Brent North Sea crude for September delivery shed $1.89 to $127.66.

Prices have tumbled by more than $20 since striking record highs above $147 on July 11. However, they remain at elevated levels after smashing through $100 for the first time at the start of the year.

The US Energy Information Administration said on Wednesday that crude reserves fell 1.6 million barrels in the week ending July 18. Market expectations had been for a decline of 600,000 barrels.

But the EIA added that gasoline stockpiles rallied by 2.9 million barrels.

That outpaced analysts’ consensus forecasts for a gain of 200,000 barrels and pointed towards flagging US demand for motor fuel.

Oil prices have slumped since hitting record highs of $147.27 in New York and $147.50 in London earlier this month, as traders fretted over slower US economic growth dampening global demand for energy.—AFP