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New York - Oil prices fell more than three percent to 70 dollars per barrel on Wednesday after government data showed supplies of refined products (distillate) U.S. larger than expected because of weak demand for the world's largest consumer.

New York crude oil, light sweet for January delivery fell 2.36 dollars to 70.26 dollars per barrel.

London crude oil, Brent North Sea species for January delivery fell 3.09 dollars to 72.10 dollars.

Distillate inventories, including heating oil and diesel, unexpectedly rose 1.6 million barrels, to 167.3 million barrels, against the estimated reduction of 600,000 barrels, according to the U.S. Energy Information Agency (EIA).

Gasoline stockpiles rose 2.2 million barrels to 216.3 million barrels, above analyst projections rose 1.5 million barrels.

"The size of the product that is built up surprising and somewhat crude oil cost now," said Stephen Schork, editor of the Schork Report in Villanova, Pennsylvania.

Meanwhile, U.S. crude oil stocks rose 3.8 million barrels to 336.1 million barrels, against the estimated 600,000 barrels increase.

Further pressure came from the increase in pressure crude oil inventories at Cushing, Oklahoma, delivery point of NYMEX crude oil futures. Inventories rose 2.5 million barrels to 33.4 million barrels last week, according to the EIA report.

The increase in Cushing stocks over the last month has helped deepen the discount to the price of oil below the futures price, in what traders called a "contango".

Crude oil fell for the last five days in part driven by the dollar recovery. However, the dollar index fell against major currencies on Tuesday.

"You see a snowball selling and without the support of a strong equity prices and the weak dollar rate back to control the market fundamentals," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

Oil prices rise in dollar currency, so it makes fuel more expensive for most consumers outside the United States.

Oil markets got support on Wednesday from the comments of two oil ministers, who said the Organization of Petroleum Exporting Countries (OPEC) should not raise oil production targets when they met later this month.

Group, which pumps more than a third of the world's oil, will meet in the Angolan capital, Luanda, on December 22 and many

OPEC ministers see oil prices current in the range of 70 to 80 dollars as fair.

"The market is pretty stable, so no, I do not think so," said state minister for petroleum Nigeria, Odein Ajumogobia, on the sidelines of a meeting of gas exporting countries when asked if OPEC needed to pump more oil. (*) (ANTARA News / Reuters)