LONDON, March 6 (AFP): Global oil prices fell sharply on Wednesday following news of a weak crude demand on the United States, which is the world's top consumer.
Brent North Sea crude for delivery in April sank $1.01 to $108.29 a barrel in London late afternoon deals.
West Texas Intermediate (WTI) for April shed $1.24 to $102.09 a barrel.
The US Department of Energy announced in its weekly energy report that American crude inventories rose by 1.4 million barrels in the week ending February 28.
That was stronger than analysts' consensus forecasts for a smaller gain of 1.0 million barrels and indicated weaker-than-expected demand.
"A 1.4-million-barrel stock build reflected the combined impact of greater imports and lower demand," noted BNP Paribas analysts.
The oil market was also hit after a report showed only modest US private-sector jobs growth in February.
Payrolls firm ADP said US businesses added just 139,000 jobs in February, well below the monthly average of 186,000 over the last year and below the 150,000 expected by analysts.
"US oil prices have also slipped back after the disappointing ADP employment report," added CMC Markets analyst Michael Hewson.
Crude futures also retreated as fears of an immediate armed conflict in Ukraine receded, but analysts said the presence of Russian-backed troops in the Crimean peninsula continue to support prices.
The oil market had soared on Monday to the highest levels this year as the Ukraine crisis raised concerns about disruptions to energy supplies.
But prices slumped Tuesday on profit-taking as Russian President Vladimir Putin declared there was "no need" yet to send troops into Ukraine.
Markets were also hit on Wednesday by fresh concerns over growth in China, which is the world's second biggest crude consuming nation.
China's National People's Congress began its annual meeting on Wednesday, with Premier Li Keqiang saying the government was targeting 7.5 growth in 2014, unchanged from last year's forecast.
The figure is below the 7.7 per cent recorded in 2013 and 2012, and is the lowest growth rate since 1999.
