NEW YORK, March 10: World oil prices slumped on Friday, retreating from hefty gains made this week on a surprise drop in US energy inventories. Traders were also keen to book profits ahead of a meeting in Vienna next week of the Organization of the Petroleum Exporting Countries (OPEC).

New York's main oil futures contract, light sweet crude for delivery in April, fell 1.59 dollars to close at 60.05 dollars a barrel.

In London, Brent North Sea crude for April delivery sank 1.20 dollars to settle at $61.13 a barrel.

Even with the declines, prices remained near recent highs, analysts said.

Strong demand conditions have combined with declining supply and the inevitable result is rising prices, Fimat analyst John Kilduff said in New York, noting a variety of refinery outages around the world.

US crude oil inventories fell by 4.8 million barrels, compared with market expectations for an increase of 1.8 million.

Gasoline reserves tumbled 3.8 million barrels -- more than double the predicted fall of 1.5m.

Distillate inventories, including heating oil and diesel, fell by 1.3 million barrels, which was less than analysts had forecast.

Following the report, crude futures bounced back from Monday's heavy losses that came amid turmoil on world stock markets.

Steve Rowles, a Hong Kong-based analyst with CFC Seymour Securities, said that traders remained cautious despite a recovery in equity markets.

With the price above the 60 dollar level, there is no reason for any production cuts, Rowles said.

Opec, still struggling to implement the 1.7 million bpd in production cuts mandated at their last two meetings, is not expected to up that figure when they again meet on March 15, Fimat's Kilduff said.---AFP