Oil prices fell sharply on Wednesday after U.S. government data showed crude stocks south of the border rose surprisingly last week as refineries hiked output and the nation imported more oil.
Data released Wednesday by the U.S. Energy Information Administration (EIA) showed crude inventories were up by 2.1 million barrels in the week to June 1. That compares with analysts' expectations for a decrease of 1.8 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 955,000 barrels.
Industry data from the American Petroleum Institute had suggested on Tuesday that U.S. crude inventories fell by two million barrels last week.
Meanwhile, gasoline stocks jumped by 4.6 million barrels, compared with analysts' expectations in an ecoomist poll for a 587,000-barrel gain. EIA data showed distillate stockpiles, which include diesel and heating oil, increased by 2.2 million barrels, versus expectations for a 784,000-barrel increase.
Brent crude futures were down 62 cents a barrel at $74.76 U.S. late morning Wednesday. U.S. light crude fell 91 cents, or 1.4%, to $64.61, while U.S. gasoline futures sank about 1.8% to $2.0684 U.S.
Crude futures had slipped slipped earlier on Wednesday as worries about oversupply ahead of a potential output increase from the Organization of the Petroleum Exporting Countries offset signs that Venezuela will halt some crude exports.
Global oil benchmark Brent crude climbed above $80 a barrel last month, but prices have eased since then on talk of higher output by OPEC.
