Oil slips to USD 75.83 a barrel

Brent North Sea crude for January delivery was off 44 cents to USD 77.92 a barrel.

This week8217;s US Department of Energy DoE report of a rise in oil stocks has renewed fears over weak American demand for oil as the country struggles to mount a strong recovery from a deep recession,analysts said.

8220;Caution is expected to remain on the back of unexpected high levels of inventories,8221; analysts from Singapore8217;s United Overseas Bank said in a report.

The DoE in its weekly report Wednesday said crude reserves rose by 2.1 million barrels in the week ending November 27,more than double market expectations.

It said US gasoline reserves had soared by four million barrels last week,much higher than the 700,000-barrel rise tipped by analysts.

However,US distillate stocks,which include heating fuel,dropped by 1.2 million barrels.

8220;Market participants might remain cautious due to the unexpected high levels of inventories that are not a healthy sign for crude oil demand,8221; analysts at the Sucden Financial Research brokerage in London said in a note to investors.