Petroleum prices extended sharp losses on Wednesday, with U.S. crude dropping below $52.00 per barrel for the first time since February, after an unexpected gain in U.S. crude inventories.
Information released Wednesday by the U.S. Energy Information Administration revealed commercial crude inventories surged by 6.8 million barrels in the week through May 31.
That estimation surpassed an earlier reading from the American Petroleum Institute that showed stockpiles rising by 3.5 million barrels in the week. Analysts surveyed by various news agencies had expected a slip of 849,000 barrels.
U.S. West Texas Intermediate crude dropped more than 3% to a new near-four-month low below $52 per barrel. WTI was last down $1.24, or 2.3%, at $52.24 U.S. a barrel, its lowest since February's reading of $52.11, plumbed on Monday.
Brent futures were down 95 cents, or 1.5%, at $61.02 U.S. a barrel mid-morning Wednesday, after touching a four-month low at $60.21 during Tuesday’s session.
Losses were earlier capped by a recovery in global equities on hopes of an interest rate cut from the Federal Reserve.
It was also reported that U.S. gasoline inventories also rose by 3.2 million barrels during the week. Stockpiles of distillates, including diesel and home heating fuel, jumped by 4.6 million barrels.
