Oil prices fall amid rising fuel inventories

NEW YORK, Dec. 6 (Xinhua) -- Oil prices dropped more than 2 percent on Wednesday amid a sharp rally in U.S. inventories of refined fuel.

Crude oil inventories fell 5.6 million barrels in the December 1 week to 448.1 million, 7.8 percent below the level a year ago, the Energy Information Administration (EIA) said in its weekly report Wednesday.

But the report showed that product inventories increased, with gasoline up 6.8 million barrels to 220.9 million, 3.8 percent below last year's level, and distillates up 1.7 million barrels to 129.4 million, a year-on-year decline of 17.4 percent.

Meanwhile, analysts said investors tended to take profit after oil prices posted solid gains in the previous session.

Goldman Sachs Group predicted earlier this week that oil prices will retain their strength, at least through 2018.

The investment bank raised its forecast for 2018 Brent and WTI to 62 U.S. dollars and 57.5 dollars a barrel, respectively, as OPEC (Organization of the Petroleum Exporting Countries) and its allies showed a stronger commitment than expected to extending their output curbs.

The West Texas Intermediate for January delivery decreased 1.66 U.S. dollars to settle at 55.96 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery lost 1.64 dollars to close at 61.22 dollars a barrel on the London ICE Futures Exchange. Enditem