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U.S. oil falls to six-week low on weak demand
Last Updated(Beijing Time):2012-02-03 05:51

U.S. crude oil price on Thursday fell to a six-week low on weak U.S. fuel demand.

U.S. crude futures declined for the fifth straight session as U. S. oil demand last week dropped to the lowest level in 13 years. According to Energy Information Administration, total fuel use dropped 8.3 percent to 17.7 million barrels a day in the week ending Jan. 27.

At Cushing, Oklahoma, the delivery point for the New York crude benchmark, inventories rose to a six-week high, posing pressure on the contract price.

However, lingering Iran tension offered lift to crude prices and pushed Brent crude higher. Brent premium to WTI hit a 12-week high of 15.79 dollars a barrel.

But Iran tension could be eased after International Atomic Energy Agency inspectors said on Wednesday that they were preparing for more talks over the "possible military dimensions to Iran's nuclear program"after a three-day visit that ended Jan. 31. The team will return to Tehran for talks on Feb. 21-22.

Light, sweet crude for March delivery slipped 1.25 dollars, or 1.28 percent to settle at 96.36 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for March delivery rose 59 cents, or 0.53 percent to close at 112.15 dollars a barrel.

Source:Xinhua 
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