Oil prices fall after significant increase in US oil inventories
Oil fell on Wednesday after rising more than 1% in the previoussession, as US oil sector data showed that crude inventories increased morethan expected; however, the prospect of deepening production cuts from OPECand its allies prevented further decline.
Brent crude futures were down 23 cents, or 0.39%, at $59.47 abarrel by 06:52 GMT on Wednesday.
US West Texas Intermediate (WTI) crude for Decemberdelivery, the new contract for the nearest month, fell 32 cents, or 0.59%, to$54.16 a barrel. In addition, the earliest November contract expired on Tuesdayat $54.16.
Data from the American Petroleum Institute (API) showed thatcrude oil inventories in the United States recorded a larger-than-expectedincrease last week, while gasoline and distillate stocks fell.
The API said that crude inventories rose by 4.5 millionbarrels in the week ending October 18 to 437 million barrels, compared with analysts'expectations of an increase of 2.2 million barrels. Oil inventories at thedelivery center in Cushing, Oklahoma, increased 2 million barrels.
Consumption of refineries rose by 129,000 bpd.
Gasoline inventories fell by 702,000 barrels, while analysts,polled by Reuters, had forecast a 2.3-million-barrel decline, API's datashowed.
Data also showed that distillate stocks, which include diesel andheating oil, fell 3.5 million barrels, while they were expected to drop 2.8million barrels.
US crude oil imports last week rose 147,000 bpd to 7.1 million bpd.