Petroleum prices extended losses on Wednesday after U.S. government data showed a big, unexpected jump in crude stockpiles, compounding pressure as the outlook for global economic growth darkened and the stock market slumped.
Global benchmark Brent crude oil was down $1.78, or 2.4%, at $70.68 U.S. late Wednesday morning, after hitting a four-month low at $70.40 U.S..
U.S. light crude fell $2.18 a barrel, or 3.3%, to $64.86 U.S., bouncing off an eight-week low of $64.60.
Data released Wednesday by the U.S. Energy Information Administration (EIA) showed U.S. commercial crude inventories rose by 6.8 million barrels in the week leading up to and including Aug. 10. Analysts had forecast stockpiles would fall by 2.5 million barrels.
The jump in stocks occurred as the nation's crude imports surged by one million barrels a day (bpd), while its exports fell by more than 250,000 bpd. That offset record activity at American refineries, which ran at 98% capacity
Stocks at the U.S. delivery hub at Cushing, Oklahoma rose by 1.6 million barrels. The East and West coasts both saw inventory levels jump by more than two million barrels.
Stockpiles of gasoline were down slightly more than expected, while inventories of distillate fuels, including diesel and home heating fuel, rose by 3.6 million barrels, more than three times the increase projected in the economist poll.
An ongoing trade dispute between the United States and China also continues to feed concerns that global economic growth will slow and ultimately shrink demand for oil.
The Organization for Economic Cooperation and Development's composite leading indicator, which covers the western advanced economies plus China, India, Russia, Brazil, Indonesia and South Africa, peaked in January but has since fallen and slipped below trend in May and June.
Not a single tanker has loaded crude oil from the United States bound for China since the start of August, compared with about 300,000 barrels per day (bpd) in June and July.
