Summary World oil prices fell sharply as swelling US inventories added to the global supply glut.
NEW YORK (AFP) - World oil prices fell sharply on Wednesday, with New York crude sliding below $49, as swelling US inventories added to the global supply glut.
US benchmark West Texas Intermediate for March delivery tumbled $1.18 to $48.84 a barrel on the New York Mercantile Exchange.
European benchmark Brent North Sea crude for March dropped $1.77 to $54.66 a barrel in London.
"The latest inventories data has reminded investors that the supply glut is here to stay for the time being," said analyst Fawad Razaqzada at trading site Forex.com.
The US Department of Energy reported that commercial crude stockpiles rose 4.9 million barrels in the week ending February 6.
Stockpiles were "at the highest level for this time of year in at least the last 80 years," the agency added.
James Williams of WTRG Economics said the report also showed a gain of 1.5 million barrels at the closely-watched Cushing, Oklahoma trading hub.
"The point is, in the short-term the oil market is oversupplied," Williams said. "In the longer term, that s going to change."
Rising stockpiles indicate weaker demand in the world s biggest economy and top oil-consuming nation, and therefore tend to depress price levels.
Oil prices have been under pressure for months, plunging about 60 percent to just over $40 a barrel between June and the end of January.
They have recovered in recent weeks as the number of drilling rigs has fallen and oil companies have trimmed some investment.
