Crude oil in New York was little changed after dropping 6.9 percent yesterday amid reduced demand for energy products from slowing world economies. Prices tumbled more than $2 a barrel yesterday, the biggest decline in three weeks, on signs that the deepening recession in the U.S., Europe and Japan is cutting fuel demand. An Energy Department report tomorrow will probably show that U.S. crude oil inventories rose for the 19th time in 21 weeks. “We’re just getting some consolidation after yesterday’s steep drop,” said Kyle Cooper, an analyst at IAF Advisors, an energy consultant in Houston. “There won’t be any measurable or sustainable rally until we start to see demand recover or inventories drop because of the OPEC production cuts.” Crude oil for March delivery rose 19 cents to $35.12 a barrel at 10:14 a.m. on the New York Mercantile Exchange. Prices are down 21 percent this year. Futures touched $32.40 on Dec. 19, the lowest since February 2004. The March contract expires on Feb. 20. The more-active April contract and all of the following months declined. April crude oil dropped 58 cents, or 1.5 percent, to $37.96 a barrel. Prices for delivery in future months are higher than for earlier ones, a situation known as contango, allowing buyers to profit from hoarding oil. This has led to record stockpiles at Cushing, Oklahoma, where New York-traded West Texas Intermediate crude is delivered. “We have to closely watch the contract expiration on Friday because of the supply pressure at Cushing,” said John Kilduff, senior vice president of energy at MF Global Inc. in New York. “We are going to challenge December’s lows and then head into the $20s.” Brent crude oil for April settlement declined 65 cents, or 1.6 percent, to $40.38 a barrel on London’s ICE Futures Europe exchange. Futures touched $40.23 yesterday, the lowest since Dec. 31.

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