Crude oil prices extended losses on Wednesday, pressured by a strong U.S. dollar and high oil stocks, even though prices remained on track for a monthly gain of 10% for August.
Figures released Wednesday by the U.S. Energy Information Administration (EIA) revealed crude inventories rose by 2.3 million barrels to a total of 525.9 million barrels in the week through Aug. 26. Analysts had expected an increase of 900,000 barrels.
Brent crude oil futures fell $1.12, or 2.3% to $47.25 U.S. per barrel late Wednesday morning ET, down 99 cents from the previous close, while U.S. West Texas Intermediate (WTI) crude futures were down $1.24, or 2.7%, at $45.11 U.S.
The larger-than-expected crude build came as refiners turned out less gasoline. Production fell to 9.51 million barrels per day in the latest week, versus 9.66 million barrels per day in the previous week.
Gasoline stocks fell by 691,000 barrels, compared with analysts' expectations for a 1.2-million-barrel drop.
Moreover, EIA data showed distillate stockpiles, which include diesel and heating oil, rose by 1.5 million barrels, versus expectations for a 157,000-barrel decline.
