LONDON, Dec 30 (AFP) - The New York oil price fell back Thursday after sharp gains a day earlier sparked by news of twin car bomb attacks in Saudi Arabia, which also later lifted the London market, in thin year-end trading.
The main US oil contract, light sweet crude for delivery in February, fell by 24 cents to 43.40 dollars a barrel in electronic deals at about 1700 GMT.
The Brent North Sea oil price meanwhile climbed in response to late gains seen in New York on Wednesday, rising 93 cents to 40.10 dollars a barrel.
"Prices are higher but in very thin volumes as the market winds down before the New Year," said GNI-Man Financial trader Kevin Blemkin, adding that slightly lower than expected US natural gas data had helped to bolster prices.
In New York oil futures surged 1.87 dollars on Wednesday on news of twin car bombs in oil giant Saudi Arabia, though no oil infrastructure was thought to be affected.
Two car bombings in Riyadh Wednesday targeted the Saudi interior ministry and a special forces building, the latest in a wave of attacks by suspected Al-Qaeda militants in the kingdom.
"We are moving into a stage, particularly as we are going to the Iraqi elections in January, where there will be lots of bad news," said Mike Coulten, analyst at the Energy Information Centre, a British-based consulting firm.
"It won't be bad in any real sense but in the sense that it might cause some fears. But with the greater cover and the Saudis bringing more production, I don't think it is going to have much effect and I expect to see a continuing softening of the oil price," he added.
The gains made late Wednesday in New York reversed losses seen early in the day on expectations of a milder than expected winter in the United States.
"Clearly the prices we saw in September and October, when the market went very, very high, could only be justified by expectations of a cold winter," said Coulten.
"But of course now, the only rational thing to expect is an average winter."
Weekly estimates of US inventories published on Wednesday revealed contradictory results for distillate stockpiles -- which include winter heating fuel.
Data from the US Department of Energy reported distillates had fallen 800,000 barrels to 119 million for the week ending December 24.
However the American Petroleum Institute reported distillates had risen 525,000 barrels to 119.4 million barrels.
"The numbers from the two agencies differ but the absolute totals are the same for both agencies," said Informa Global Markets analyst Peter Hills.
"Even so stocks are still 17 million barrels below last year," he added.
Crude oil inventories eased 800,000 barrels to 295.1 million in the week ended December 24, the Department of Energy said.
12/30/2004 17:23 GMT - AFP