LONDON, Jan 9: Oil prices fell back close to $40 on Friday, having begun the session higher, at the end of a very volatile week.New York’s main contract, light sweet crude for delivery in February, fell $1.35 to $40.35 per barrel.

Brent North Sea crude for February shed 96 cents to $43.71 on London’s InterContinental Exchange.

Oil prices had fallen Thursday on concerns over a US stockpile buildup and worries that the global economic slump would further dampen demand, traders said.

The US Department of Energy said on Wednesday that stockpiles of crude increased 6.7 million barrels last week, far higher than predictions from analysts for a gain of only 700,000 barrels.

News of the buildup in recession-struck United States, the world’s biggest crude consuming nation, pushed New York crude down $5.95 and London Brent oil by $4.67 on Wednesday.

“The only thing that can drive oil higher in the short term is geopolitical news because we are loaded with crude,” said Phil Flynn of Alaron Trading.

“The 6.7 million barrels in crude show supplies of crude are reaching glut-like proportions,” he said.—AFP