LONDON, March 22: World oil prices weakened on Wednesday as traders anticipated a healthy market update on crude stockpiles in the United States, the world’s biggest energy consumer. New York’s main contract, light sweet crude for delivery in May, fell by 18 cents to $62.16 per barrel in electronic deals before the market’s official opening.

In London on Wednesday, the price of Brent North Sea crude for May delivery receded three cents to $62.10 per barrel in electronic trade.

Crude futures were “holding steady ahead of US inventory data due later on Wednesday that is expected to show a rise in crude stocks, but a fall in gasoline and distillate stocks,” analysts at the Sucden brokerage said.

The US Department of Energy (DoE) was expected to reveal another large jump in crude reserves when it releases its inventories report for the week to March 17.

“People are expecting more builds in inventories,” said Tony Nunan, a Tokyo-based energy risk manager for Mitsubishi Corp.

“The market is really focusing on the short-term inventories which you can’t deny are very high.”

London analysts are predicting that crude stocks rose by 2.5 million barrels last week.

US crude inventories had jumped 4.8 million barrels in the week to March 10 to stand at 339.9 million—the highest level since April 1999.

Meanwhile, market expectations are that distillates, including heating fuel and diesel, will have dipped by 2.2 million barrels last week, while gasoline stocks are forecast to have fallen by 1.2 million barrels.

US gasoline reserves are at a seven-year high, but are only slightly above their level at the same stage last year.—AFP