MELBOURNE : Oil prices fell on Thursday after industry data showed a large unexpected increase in U.S. crude stocks for a second week, heightening concerns of a drop in fuel demand.
The market weakened on worries about a looming U.S. economic slump after Federal Reserve officials said rates needed to rise beyond 5 per cent to control inflation even after data showed retail sales fell more than expected in December. Adding to the pall, data from the American Petroleum Institute showed U.S. crude oil inventories rose by about 7.6 million barrels in the week ended Jan. 13, according to market sources.
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