Oil prices fell sharply on Wednesday after U.S. government data showed a surprise jump in crude oil stockpiles in the United States, as refinery runs dropped and crude imports rose by more than one million barrels a day.
Figures released by the U.S. Energy Information Administration showed commercial crude inventories south of the border rose by 3.3 million barrels a day in the week to May 26, compared with analysts' expectations for a drop of 3.5 million barrels.
Moreover, data from industry group the American Petroleum Institute had suggested on Tuesday that U.S. crude inventories fell by 4.6 million barrels.
Brent crude prices were at $48.32 U.S. per barrel mid-morning Wednesday, down $1.80, or 3.6%. U.S. light crude prices were at $46.12 U.S. per barrel, downward $2.07 cents, or 4.3%.
Elsewhere, gasoline stocks rose by 3.3 million barrels, compared with analysts' expectations for a gain of 580,000 barrels. What's more, distillate stockpiles, which include diesel and heating oil, rose by 4.4 million barrels, versus expectations for a 281,000-barrel increase
The EIA data also showed a drop in gasoline demand of about a half million barrels a day, a surprising development given that the data reflected the start of the summer driving season following the Memorial Day holiday.
