(RTTNews) - Crude oil prices inched lower as traders shook off an unexpected decline in weekly inventories. Light sweet crude for January delivery dropped to $46.79, down 17 cents on the session. Oil closed at its lowest mark since May 2005 on ongoing demand worries.
U.S. commercial crude oil inventories decreased 400,000 barrels in the week ended Nov. 28. Analysts were looking for a build of about 1.2 million barrels. Total motor gasoline inventories decreased by 1.6 million barrels last week, while distillates declined by 1.7 million barrels.
Data also showed that, in the recent four-week period, motor gasoline demand fell 3.2%, distillate fuel demand dropped by 2.2% and jet fuel demand plunged 16.7%.
Oil has lost 14% already this week after OPEC ministers decided not to cut output following a meeting over the weekend in Egypt. A cut is extremely likely at the Ordinary Meeting on Dec. 17 in Oran, Algeria.
However, recent reductions in production have been unable to slow the decline in oil prices. Crude moved more than $100 off its record $147.27 on July 11.
Gasoline prices dropped to $1.80 per regular unleaded gallon across the U.S., according to AAA. This is down from $2.415 a month ago and $3.052 a year ago.
On the economic front, economic data showed that the pace of productivity growth in the third quarter was revised up to 1.3 percent from the preliminary reading of 1.1 percent growth, although it still reflects a slowdown compared to the 3.6 percent growth that was seen in the second quarter.
A separate U.S. report showed non-farm private employment fell by 250,000 jobs in November following a revised decrease of 179,000 jobs in October.
Later, the Institute for Supply Management said that its index of activity in the service sector fell to 37.3 in November from 44.4 in October, with a reading below 50 indicating a contraction in the sector. Economists had been expecting the index to show a more modest decline to a reading of 42.0.
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