LONDON, Nov 28: Oil prices weakened on Wednesday after news that US energy inventories had fallen less than expected last week and as Saudi Oil Minister Ali Al-Nuaimi refused to be drawn over whether Opec would hike output.

Crude futures had slumped on Tuesday, losing more than three dollars on increasing speculation that the Organisation of Petroleum Exporting Countries may decide at a meeting in Abu Dhabi next week to hike production.

On Wednesday following the US stocks data, New York’s main contract, light sweet crude for January delivery, slumped $1.67 to $92.75 a barrel.

Brent North Sea crude for January shed 57 cents at $91.95 a barrel.

The US Department of Energy (DoE) on Wednesday said US crude inventories fell by 400,000 barrels in the week to November 23. Analysts had forecast a drop of 1 million barrels.

Meanwhile stocks of distillates, which include heating fuel, shed only 100,000 barrels last week when the market forecast had been for a drop of 1.2 million.

The DoE added that US refinery usage jumped to 89.4 per cent of capacity, up 2.4 percentage points compared with a week earlier.

“The big news is that (refinery) runs shot way up,” Man Financial trader Andy Lebow said.

Crude futures have tumbled from almost $100 since last week, when New York crude struck a record high of $99.29 on concerns over tight oil supplies.

Saudi Oil Minister Ali Al-Nuaimi on Wednesday insisted that the world oil market was well supplied and that high prices did not properly reflect the supply-demand situation.

“There is no relationship between the fundamentals today and the price of oil. There is a mismatch,” the Saudi told reporters after delivering a speech at an energy forum in Singapore.—AFP