Futures for oil fell on Wednesday after the U.S. government reported a surprise build in weekly crude inventories amid concerns of persistent oversupply.
Data released Wednesday by the Energy Information Administration revealed that U.S. commercial crude in storage rose by 1.7 million barrels to a total of 521.1 million barrels in the week through July 22. Analysts had expected a draw of 2.3 million barrels.
The EIA went on to say total motor gasoline stockpiles also rose by about a half million barrels, despite a drop in U.S. gasoline production. Distillate oil inventories decreased.
Industry data from the American Petroleum Institute (API) late on Tuesday had suggested U.S. crude stocks fell by 827,000 barrels.
Moreover, global benchmark Brent crude was on track for the first monthly loss since January and the largest loss of 2016. Futures traded down $1.17, or 2.6%, at $43.70 U.S. a barrel by mid-morning Wednesday.
U.S. West Texas Intermediate crude fell 97 cents, or 2.2%, at $41.95 U.S. a barrel, breaking through a three-month low of $42.36 reached on Tuesday.
