Oil prices dropped 4 percent to below $59 on Wednesday as mild weather in the U.S. Northeast cut fuel demand in the world's biggest heating oil market, according to Reuters. Prices were also undermined by a lack of fund interest as investors appeared to favor buoyant equity markets over commodities. U.S. crude CLc1 fell $2.54 to $58.51 a barrel by 1730 GMT, off a session low of $58.32, which was the lowest level since November. London Brent LCOc1 plunged $2.35 to $58.09. U.S. oil on Friday -- the last trading day of 2006 -- settled at $61.05, only 1 cent higher than at the end of 2005 and well below the record high of $78.40 hit in mid-July last year. Prices have been dragged down since late December by unseasonably warm weather in the United States, especially in the giant Northeast heating oil market.
