LONDON, Feb 5: Oil prices fell close to $40 in New York, dragged down by rising inventories in the United States, the biggest crude consuming nation, analysts said.

New York’s main futures contract, light sweet crude for delivery in March, eased 11 cents to $40.21 a barrel.

Brent North Sea crude for delivery in March climbed 66 cents to $44.81 a barrel.

“Prices bounced to around the $40-41 a barrel range (in New York), being pulled in opposite directions by expectations of Opec cuts bringing demand and supply into balance on the one hand, and the continuing trend of inventory builds highlighting weakness in demand on the other,” said Barclays Capital analyst Kevin Norrish.

The Organisation of Petroleum Exporting Countries had last week signalled it would consider more reductions in output as its member countries try to lift prices and in turn their incomes.

Oil prices meanwhile traded mixed for a second day running after the US government’s Energy Information Administration (EIA) on Wednesday reported a huge rise in crude stockpiles last week, underlining slowing demand in the world’s biggest energy consumer.

“The EIA reported yet another astonishing rise in US oil stocks, highlighting lower demand and increasing imports,” said VTB Capital analyst Andrey Kryuchenkov.

“However, it was somewhat balanced out by a smaller than expected increase in gasoline inventories and a larger than expected draw in distillate inventories... as seasonal demand continues to influence the market.” —AFP