LONDON, Dec 7: Oil prices fell on Wednesday after news that US stockpiles of crude oil and refined products rose sharply over the past week, easing concerns about a supply crunch, dealers said.

Wednesday’s weekly snapshot of energy inventories from the Department of Energy (DoE) helped to reverse earlier gains, made amid concerns over heating fuel supplies during the northern hemisphere winter.

New York’s main contract, light sweet crude for delivery in January, lost 54 cents to 59.40 dollars per barrel in pit trading.

In London, the price of Brent North Sea crude for January delivery shed 47 cents to 57.14 dollars per barrel in electronic deals.

“There were builds accross the board in US inventories, which is very bearish,” a London broker, who asked not to be identified, told AFP.

The DoE said that crude stocks increased 2.7 million barrels for the week ended December 2 to total 320.3 million barrels, higher than the expected gain of 2.1 million barrels.

Crude stocks levels are now some 11 per cent higher than at the same stage last year.

Distillates, used for heating oil and diesel fuel, also rose 2.7 million barrels to stand at 130.6 million, the DoE said. Market forecasts had been for a build of 1.7 million barrels.

“There is no more risk of heating oil being in shortage this winter,” the broker added.—AFP