Warm weather hopes hit oil prices

US light sweet crude settled $1.32 lower at $58.07. In London Brent Crude was 16 cents down at $57.98.

The fall followed forecasts of higher than normal temperatures in the US Northeast during March from the National Weather Service.

The region is the world's biggest user of heating oil and consumption ebbs in mild weather.

As a result, traders have speculated that US oil and gas stockpiles are higher than expected. However, the market will have to wait until Thursday for official inventory data.

Weather hopes

"The market is melting. Once again, traders are declaring the end to winter - which is the third time they've declared it this winter - and that's putting pressure on the market," Alaron Trading analyst Phil Flynn told Associated Press.

In recent weeks severe weather had helped oil prices rally from lows of $49.90 hit on 18 January after unseasonably warm weather.

Meanwhile, traders have shrugged off developments which, at one time, may have pushed prices higher.

A refinery fire and hostage taking in Nigeria - Africa's largest oil producing nation - failed to drive prices significantly higher in recent days.

Elsewhere, a statement from oil cartel Opec that it would not cut output also served to ease supply fears.

Analysts had speculated that Opec may cut supplies in a bid to raise prices.

Any cuts would come on top of a planned drop in production announced late last year.

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