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Oil prices fell for the third day straight after last week's jump in U.S. gasoline supplies, and milder weather being forecast.

"We could see a little bit lower crude prices in the coming weeks with the mild weather forecast in the U.S.," said Herwin Schonewille, a trader with Fortis Bank NV. "There is a pressure on heating oil market."

According to a Bloomberg article,

"Crude-oil stockpiles fell 324,000 barrels to 295.3 million, leaving supplies 12 percent higher than a year earlier, the report showed. The U.S. added 1 million barrels of crude oil to the Strategic Petroleum Reserve. Oil in the reserve isn't included in the inventory total."

"The U.S. weekly data follows the pattern of recent weeks, with heating oil inventories continuing their descent," Kevin Norrish, an analyst at Barclays Capital in London, said in a report. "The level of total U.S. oil demand is showing a robust 1.6 percent year-on-year increase in January, despite the mild weather in the first half of the month."

OPEC will cut its crude supplies if oil inventories build up in the second quarter.

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