At 1:26 pm (0526 GMT) New York's main oil futures contract, light sweet crude for delivery in March, was down seven cents to 57.92 dollars a barrel from 57.99 dollars in late US trades Thursday.

Brent North Sea crude for April shed 20 cents to 57.40 dollars.

"In the short-term, the market is bearish as inventory levels are overall high and the (US) National Weather Service forecast shows weather in the northeast US is going to go above normal," said Tony Nunan, of Mitsubishi Corporation's international petroleum business in Tokyo.

Analysts at BMO Nesbitt Burns said in US trading hours that with the end of the heating season fast approaching "and Saudi resistance to more robust (output) cuts, current inventory levels have the potential to force prices lower in the near-term."

Saudi Arabia is the Opec cartel's biggest producer.

The Organisation of the Petroleum Exporting Countries (Opec) said Thursday it was maintaining its estimate for growth of oil demand in 2007 at 1.5 percent, in line with its previous monthly report.