Oil prices fell on Wednesday as U.S. crude stocks rose last week to the highest since Sept. 2017, while gasoline stockpiles increased and distillate inventories fell.
Data released Wednesday by the U.S. Energy Information Administration revealed that crude inventories rose by 9.9 million barrels in the last week to 470.6 million. That compared with analysts’ expectations for an increase of 1.5 million barrels.
Brent crude oil futures were down 21 cents at $71.85 U.S. per barrel mid-morning Wednesday. U.S. crude futures fell 55 cents at $63.36 per barrel.
An intensifying crisis in Venezuela along with tightened U.S. sanctions on Iran partly offset the impact of the unexpected rise in U.S. crude inventories.
Markets also keenly watched Venezuela, where opposition leader Juan Guaido called for an uprising against President Nicolas Maduro. Many observers fear this could lead to escalating violence and further disruptions to crude supply.
The unrest adds to a range of fluid geopolitical factors which have been affecting oil prices in recent months.
Oil markets have already tightened this year due to supply cuts led by OPEC as well as the sanctions on Venezuela and Iran.
Washington is set to revoke waivers for select countries to import Iranian oil on Wednesday and says it aims to drive down Iran’s crude exports to zero.
