Crude oil fell to a four-week low as milder-than-average U.S. temperatures trumped concern about diminishing inventories in the world's biggest energy consumer.

Temperatures will be higher than normal in most of the country from Jan. 2 through Jan. 6, according to the U.S. National Weather Service. U.S. crude supplies have declined 20.2 million barrels since Nov. 17, the biggest five-week drop since September 2005, when hurricanes damaged oil facilities in the Gulf of Mexico, according to yesterday's Energy Department report.

``Most market participants are far more concerned by the milder weather in the U.S., which is expected to continue throughout the rest of the winter,'' said Michael Davies, an analyst in London with commodities broker Sucden (U.K.) Ltd.

Crude oil for February delivery fell as much as 54 cents, or 0.9 percent, to $59.99 a barrel on the New York Mercantile Exchange, the lowest since Nov. 27. The contract traded at $60.03 at 1:57 p.m. London time. Brent crude oil dropped 58 cents to $60.09 a barrel on the London-based ICE Futures exchange.

The price of the near-month contract has averaged $66.23 a barrel this year, 17 percent higher than in 2005. Supply disruptions in Nigeria and Iraq, and concern Iran would curb shipments because of the confrontation over the country's nuclear program, caused New York-traded crude to reach a record of $78.40 a barrel on July 14.

The three countries were responsible for 9.6 percent of global output last year, according to the International Energy Agency.