Oil prices fell to a two-month low of $70 a barrel on Thursday as excess inventories and sluggish demand outweighed gains on Wall Street and positive economic data. US crude for January delivery fell 54 cents to $70.13 a barrel by 1:09 p.m. EST (1809 GMT), after hitting a low of $69.81 as it lost ground for the seventh consecutive day. London Brent crude fell 81 cents to $71.58. On Wednesday, US Energy Information Administration data showed builds in US refined product stocks, highlighting the weakness of demand in the world's largest energy consumer. “NYMEX crude futures have fallen in recent days without much help from the dollar or equity markets. And the disconnect with the financial markets highlights the continuing bearish fundamentals in the energy markets,” said Jim Ritterbusch, president, Ritterbusch & Associates, Galena, Illinois. There were further signs that global oil supplies were rising on Thursday as fuel inventories held by two top oil firms in China, the world's second-largest consumer of oil, also climbed as domestic sales dropped. The Organization of Oil Exporting Countries, which will hold its next meeting on Dec. 22, is unlikely to raise production targets, according to most members. It is seen to leave oil output targets unchanged at the meeting, setting the stage for prices to remain between $70 and $80 per barrel.
