SINGAPORE — Oil prices extended losses in Asian trade Thursday on US demand worries after a government inventory report showed a surge in crude stocks in the world's largest energy consumer, analysts said. New York's main contract, light sweet crude for May delivery, dropped 20 cents to 80.41 dollars a barrel. The contract had shed 1.30 dollars Wednesday. Brent North Sea crude for May was down 24 cents to 79.38 dollars a barrel. The US Department of Energy said in its weekly inventory report Wednesday crude oil inventories rose 7.2 million barrels last week, confounding expectations of an increase of 1.7 million barrels. "Primarily, the market is responding to the report which showed a very substantial increase in crude oil inventory over the past week," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz. Oil was also under pressure from "the continued volatility of the US dollar versus the euro" amid heightened fears over the debt crisis engulfing Greece and Portugal that has sent the euro dipping lower this week, said Shum. A strengthening greenback makes dollar-priced oil more expensive for buyers using weaker currencies, denting demand. Oil prices touched 82 dollars on Tuesday before tumbling as the euro fell on mounting speculation the EU would ask the International Monetary Fund to help bail out debt-ridden Greece.

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