A surprisingly large rise in crude inventories in the United States -- as reported in federal government figures -- resulted in a more than 1% drop in oil prices Wednesday
Brent crude, the international benchmark, slumped 81 cents, or 1.5%, at $55.11 U.S. a barrel late morning Wednesday. U.S. crude fell 91 cents, or 1.7%, to $52.23 U.S.
The U.S. Energy Information Administration (EIA) reported crude inventories rose by 8.2 million barrels, marking the ninth straight week of increases. Analysts had forecast a rise of only two million barrels.
The EIA also said crude stocks at the Cushing, Oklahoma, delivery hub rose by 867,000 barrels
The buildup came as refineries cut output and crude imports rose last week by 385,000 barrels per day.
Moreover, gasoline stocks fell 6.6 million barrels, compared with analysts' expectations for a 1.4-million-barrel drop. a drop which came as gasoline demand recovered in the latest week, rising above the four-week average.
EIA concluded that distillate stockpiles, which include diesel and heating oil, declined by 2.7 million barrels, versus expectations for a 900,000-barrel fall.
