Oil prices extended losses Wednesday morning, after weekly data showed a sharp rise in U.S. crude stockpiles.
Futures were already under pressure from a potential increase in crude output by the Organization of the Petroleum Exporting Countries to cool the market's recent rally and cover any shortfalls in supply from Iran and Venezuela.
Brent crude futures were down $1.22 at $78.35 U.S. a barrel mid-morning, while U.S. crude fell 68 cents to $71.52 U.S. a barrel.
Data released by the U.S. Energy Information Administration (EIA) showed U.S. commercial crude inventories rose by 5.8 million barrels in the last week, compared with analysts' expectations for an decrease of 1.6 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.123 million barrels.
EIA data also showed that gasoline stocks rose by 1.9 million barrels, compared with analysts' expectations for a 1.4-million-barrel drop. Distillate stockpiles, which include diesel and heating oil, fell by 1 million barrels, versus expectations for a 1.3-million-barrel drop.
Gasoline futures were down 1.8% at $2.230 U.S. per gallon following the data release.
Oil prices have gained nearly 20% so far this year, with Brent briefly rising above $80 U.S., driven primarily by coordinated supply cuts by OPEC and partners including Russia.
