World oil prices dived beneath $53 per barrel today, after the US government had revealed a sharp weekly increase in stocks of distillates, including heating fuel, analysts said.London's Brent North Sea crude for February delivery sank to $52.60 per barrel in electronic trading -- a low which was last witnessed on June 13, 2005. The contract later stood at $53.28, down 41 cents from yesterday's close.New York's main oil futures contract, light sweet crude for delivery in February, tumbled to $52.94 per barrel in electronic deals before the start of official trading. That also marked the lowest point since June 2005.The New York contract later pulled back to $53.50 per barrel, down 52 cents from yesterday.The US Department of Energy had said yesterday that stockpiles of distillates and gasoline (petrol) rose sharply last week, offsetting a bigger-than-expected drop in crude oil inventories."The data was relatively bearish with some pretty big builds in products -- gasoline and distillates -- and we've got ongoing very mild weather," said Barclays Capital analyst Kevin Norrish."Overall we do not think the downwards move is justified, but with the very mild weather not just in the United States but right through the northern hemisphere, there is the potential for further price losses."The big number is $50 now, and given the momentum the market cannot rule out a test at that level."
