Oil Prices Extend Losses After U.S. Crude Stocks Rise More Than Forecast

Investing.com – Crude prices were lower on Wednesday, hitting the lowest levels of the session after data showed a sizable increase in U.S. oil and gasoline stockpiles last week.

U.S. West Texas Intermediate (WTI) lost 48 cents, or 0.8%, to $62.55 a barrel by 10:35AM ET (1535GMT). Prices were at around $63.10 prior to the release of the inventory data.

Meanwhile, London-traded futures, the benchmark for oil prices outside the U.S., shed 55 cents, or roughly 0.8%, to $65.95 a barrel.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories increased by 3.0 million barrels in the week ended Feb. 23.

That compared with analysts’ expectations for a gain of around 2.4 million barrels, while the American Petroleum Institute late Tuesday reported a supply-increase of 933,000 barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 1.2 million barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 423.5 million barrels as of last week, which the EIA considered to be in the lower half of the average range for this time of year.

U.S. crude oil production rose to an all-time high of 10.28 million barrels per day, keeping it above Saudi Arabia’s output levels and within reach of Russia, the world’s biggest crude producer.

Analysts and traders have recently warned that booming U.S. shale oil production could potentially derail OPEC’s effort to end a supply glut.

The report also showed that gasoline inventories increased by 2.5 million barrels, compared to expectations for a decline of 0.1 million barrels. For distillate inventories including diesel, the EIA reported a drop of 1.0 million barrels.

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