Oil prices went south on Wednesday after government data showed a surprise rise in U.S. crude stockpiles, while the drop in gasoline stocks and distillate inventories was far larger than expected.
Data revealed Wednesday by the U.S. Energy Information Administration showed crude inventories rose by 856,000 barrels in the week to Oct. 20, compared with analysts' expectations for a decrease of 2.6 million barrels.
EIA also showed gasoline stocks fell by 5.5 million barrels, compared with analysts' expectations for a drop of 17,000 barrels. Distillate stockpiles, which include diesel and heating oil, decreased by 5.2 million barrels, versus expectations for an 860,000-barrel decline.
The stockpile changes came as refineries increased activity and as the United States imported more crude oil than in the previous week.
Brent crude futures were down 21 cents at $58.12 U.S. a barrel, having closed up 96 cents or 1.7% on Tuesday. U.S. West Texas Intermediate crude were down 36 cents to $52.11 U.S., after closing at a six-month high in the previous session.
Saudi Arabian Energy Minister Khalid al-Falih said on Tuesday the kingdom was determined to reduce oil inventories in industrialized countries to their five-year average and raised the prospect of prolonged output restraint once a pact ends led by the Organization of the Petroleum Exporting Countries to cut supplies.
OPEC, Russia and other producers have cut oil output by about 1.8 million barrels per day (bpd) since January. The pact runs to March 2018, but they are considering extending it.
