NEW YORK (AFP) — World oil prices retreated Thursday on easing supply concerns as OPEC lowered its estimate for demand growth and the US government reported a surprise increase in crude stockpiles, traders said.
New York's main contract, light sweet crude for December delivery, slipped 66 cents to close at 93.43 dollars a barrel.
In London, Brent North Sea crude for December delivery shed 42 cents to settle at 90.94 dollars a barrel. Brent's December contract expired at the market close.
OPEC lowered its estimate for world oil demand growth in 2007, citing a late winter and high gasoline prices in North America that seem to be reducing consumption.
The cartel, which produces about 40 percent of the world's crude, estimated demand would fall by 100,000 barrels per day in the fourth quarter this year and by 30,000 bpd in 2008.
The new estimate came as ministers from the Organization of the Petroleum Exporting Countries were defiant in the face of pressure from consumer nations to raise oil output, saying the market was amply supplied and that blame for crude prices near 100 dollars a barrel lay outside the cartel.
Last week, New York's main contract struck an historic peak of 98.62 dollars and Brent raced to an all-time high of 95.19 dollars on fears of tight energy supplies in the United States, the world's biggest energy user.
The US government on Thursday reported that domestic stockpiles of crude had jumped by 2.8 million barrels to 314.7 million in the week ended November 9.
The gain confounded analysts' consensus forecast of a fall of 750,000 barrels. Inventories of distillates, including heating oil and gasoline, dropped by 2.0 million barrels to 133.4 million, far steeper than the forecast 500,000-barrel decline.
The distillates report is being closely watched as the United States heads into the northern hemisphere winter, when demand for heating fuel typically peaks.
"This week's build verges on being counter-seasonal as stockpiles typically decline during November through January," said Eric Wittenauer, an analyst at AG Edwards.
Meanwhile in Riyadh, Saudi Arabia, OPEC president Mohammad al-Hamli said current high oil prices are "potentially dangerous" as they are driven by factors that are beyond the 12-member cartel's control.
"These prices are potentially dangerous," Hamli, who is also the oil minister of the third-largest OPEC producer United Arab Emirates (UAE), said Thursday at a symposium held as part of a rare OPEC summit.
"OPEC is doing all it can for prices to be suitable" for consumers and producers, Hamli said. "But it is clear that factors are beyond OPEC's control."
Saudi Arabia, OPEC's biggest and most influential member, earlier this week described fears of supply shortages as "groundless" and OPEC secretary-general Abdallah al-Badri on Wednesday voiced his opposition to an increase.
They blame a declining dollar, speculation by investment funds and geopolitical factors for record prices of more than 90 dollars per barrel.
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