Thursday, April 27 2006 11:16 Hrs (IST) - World Time -

New York: World oil prices slid in reaction to news that US gasoline and crude stockpiles fell by less than expected last week, dealers said.

Oil futures continued a retreat begun Tuesday when President George W Bush announced several measures intended to arrest a sharp and politically damaging rise in US gasoline prices.

New York's main contract, light sweet crude for delivery in June, sank 95 cents to close yesterday at US$ 71.93 a barrel.

In London, the price of Brent North Sea crude for June delivery shed 1.12 dollars to finish at USD 72.09 a barrel.

The Department of Energy (DoE) said gasoline reserves, which have tumbled in recent weeks heading into the US summer driving season, declined by a further 1.9 million barrels to 200.6 million in the week to April 21.

The fall was less than analysts' forecasts of a 3-million -barrel drop.

Crude stocks fell by 200,000 barrels to 345 million barrels - three times less than the 600,000-barrel decline forecast by market watchers.

"The stats were bearish," said Societe Generale analyst Deborah White.

The DoE added that US inventories of distillates, used to make diesel and heating fuel, bucked the downward trend to rise by 1.0 million barrels over the week to 115.6 million. Market watchers had expected a fall of 1.8 million.

Falling gasoline supplies are a major concern ahead of the peak demand season for motor fuel beginning in May, when many Americans use their cars to go on vacation.