LONDON, Jan 5: Oil prices skidded lower on Wednesday after a US government report showed rises in stockpiles of heating fuel, assuaging worries about winter supplies in the world's biggest consumer.

New York's main contract, light sweet crude for delivery in February, fell 51 cents to $43.40 a barrel at about 1700 GMT. At one point the contract fell to as low as $42.60.

In London, the price of Brent North Sea crude oil for delivery in February lost 34 cents to $40.70 a barrel. The Department of Energy reported distillates inventories - mostly heating fuel and diesel - rose 2.0 million barrels to 121.1 million for the week ending December 31.

Heating fuel stocks alone increased by 1.2 million barrels to 50.1 million. Gasoline stocks were also up 2.0 million barrels at 214.3 million. However, crude stockpiles fell 3.3 million barrels to 291.8 million. -AFP