LONDON: Oil prices fell further on Thursday following data that revealed weak energy demand in the United States, the world's biggest economy, analysts said.

New York's main contract, light sweet crude for November delivery, dropped 71 cents to 68.26 dollars a barrel.

Brent North Sea crude for November delivery slid 61 cents to 67.38 dollars.

A widely-watched Department of Energy report released Wednesday showed US crude reserves rose 2.8 million barrels in the week to September 18, against analyst expectations for a decline.

Stocks of distillates, which include heating fuel, rose by three million barrels last week. Distillates are being closely monitored ahead of the northern hemisphere winter when demand for heating fuel peaks.

"At present, US distillate fuel demand remains weak, being depressed by the US economic downturn in the past year," the Commonwealth Bank of Australia said in a note on Thursday.

Oil prices tumbled nearly three dollars on Wednesday in reaction to the data.