Oil Boom Profits

U.S. light crude for November were down $1.18 to $57.75 a barrel by 1754 GMT, adding to losses of $1.01 the previous session. London Brent crude fell $1.08 to

$65.86.

U.S. crude stocks rose 5.1 million barrels last week, the Energy Information Administration said, surpassing analysts expectations for a 1.3 million barrel increase.

Domestic distillate stocks, which include heating oil, fell a larger-than-expected 4.5 million barrels, while gasoline dropped 5.2 million barrels.

"The build in crude was so big it put a damper on the bullish products data," said Nauman Barakat, senior vice president at Macquarie Futures USA.

Ministers from the Organization of the Petroleum Exporting Countries will meet in Qatar on Thursday to clear a deal to remove 1 million barrels from daily output in an attempt to stem oil's drop from a high of $78.40 in July.

Kuwait's energy minister said some hawkish OPEC oil ministers were pushing for an even deeper output reduction.

"They feel that one million may not have any impact on oil prices. That's the thinking of some, I feel this thinking is there, we'll see it when we meet," Sheikh Ali al-Jarrah al-Sabah told Reuters in an interview.

OPEC member Venezuela made a second cut in its oil production this month, slicing a further 50,000 bpd from its output this week after a cut of the same amount on October 1, a senior official with state oil firm PDVSA told Reuters.

Venezuela and Nigeria have led efforts to trim production and halt a rapid decline in oil prices, which hit a 2006-low of $57.22 a barrel last week.

The group is divided on whether it should cut the output from actual production of roughly 27.5 million barrels per day (bpd) or from its nominal 28 million-bpd ceiling, a disagreement analysts say has hurt OPEC's credibility.

"Everyone is taking a wait-and-see attitude with OPEC," said Olivier Jakob of Petromatrix. "They could have a one million barrel cut on paper, but in reality it could be smaller than that."