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World oil prices fell Friday as the market focused on high levels of US petroleum inventories and other signs of a tepid recovery from the global recession.
New York's main contract -- light sweet crude for delivery in December -- dropped 59 cents from Thursday to close at 76.35 dollars per barrel.
In London, Brent North Sea crude for December settled down 47 cents at 75.55 dollars a barrel.
Even though some financial markets are encouraged by signs of economic improvement, independent oil analyst Ellis Eckland said: "There is a lot of concern about the US economy; there are concerns that unemployment is going to be high for many years."
Jason Schenker at Prestige Economics said the market "remained under pressure from yesterday's surprisingly bearish inventory numbers."
This is a strong indicator "that supply is up and abundant," he said.
The US Department of Energy said American crude oil reserves surged 1.8 million barrels in the week ending November 6, more than the 200,000 barrels anticipated by the market.
US gasoline or petrol stockpiles unexpectedly jumped by 2.5 million barrels while distillates, which include diesel and heating fuel, rose by around 300,000 barrels.
Markets gave a lukewarm response to news that the recession was over in Europe, with data showing Friday 0.4 percent growth in the euro area and 0.2 percent the European Union as a whole in the past quarter.
"The message is that the recovery has begun, but the upswing will be a moderate and gradual affair as domestic demand will remain lackluster," said Fortis economist Nick Kounis.
Mike Fitzpatrick at MF Global said there are not yet concrete signs of increased energy demand.
"Actual demand for commodities will not begin to grow significantly until there is evidence of sustained job growth, and as long as 'virtual' demand dominates, markets will be lulled into trading ranges or panicked into violent corrections," he said.
Lawrence Eagles at JPMorgan Chase Bank said the market was also mulling Saudi Arabia's decision to boost deliveries to international oil companies in December.
"There was a strong message from Saudi Arabia that it feels uncomfortable with prices above 80 dollars a barrel," he said.
Eagles said oil prices have been driven by easy money that is pouring into the market.
"The argument for the bull side of the oil market is increasingly centered around the surge in global liquidity as the economy takes off," he said.
"But for oil, even if the cost of money is low, the dire straits of the refining industry will mean that there will be a headwind of physical inventory destocking to maximize cash flow and reduce year-end taxation obligations."
