Crude oil futures fell sharply the second straight session on Thursday, amid warmer-than-normal temperatures in the Northeast United States, as the supplies of gasoline and other refined fuels increased.

New York's main contract, light sweet crude for delivery in February, lost 2.73 dollars to close at 55.59 dollars a barrel, the lowest since June 15, 2005.

In London, Brent North Sea crude for February delivery fell 2. 85 dollars to settle at 55.11 dollars. U.S. commercial crude oil inventories dropped in the past week but supplies of gasoline and other refined fuels increased, the Energy Department said on Thursday in its weekly petroleum report.

In the week ending Dec. 29, 2006, U.S. commercial crude oil inventories fell 1.3 million barrels to 319.7 million. Analysts had been expecting a plunge of 2 million barrels.

Gasoline stockpiles, however, surged 5.6 million barrels last week to 209.5 million, against expectations of a 1.5 million- barrel rise.

Reserves of distillate products, such as heating oil and diesel fuel, rose by 2 million barrels to 135.6 million last week. The gain was much bigger than the rise of 850,000 barrels expected by analysts.

This winter in Northeast United States, the world's largest consumer of heating fuel, is warmer than normal till now. Moreover, the National Weather Service said the northern United States will have higher-than-average temperatures in the coming days, The warmer winter could boost the distillate stockpiles and weaken the fuel prices.