Oil prices have fallen back close to 40 dollars having begun the session higher, at the end of a very volatile week. New York's main contract, light sweet crude for delivery in February, fell 1.35 dollars to 40.35 dollars per barrel. Brent North Sea crude for February shed 96 cents to 43.71dollars on London's InterContinental Exchange.
Oil prices had fallen Thursday on concerns over a US stockpile buildup and worries that the global economic slump would further dampen demand, traders said. The US Department of Energy said on Wednesday that stockpiles of crude increased 6.7 million barrels last week, far higher than predictions from analysts for a gain of only 700,000 barrels.
News of the buildup in recession-struck United States, the world's biggest crude consuming nation, pushed New York crude down 5.95 dollars and London Brent oil by 4.67 dollars on Wednesday. The market also remains concerned over higher US jobless numbers and President-elect Barack Obama's mammoth task of stimulating growth.
