Oil prices slipped on Wednesday after Brent pushed towards a nearly five-month high of $70 U.S. a barrel on supply cuts led by the Organization of the Petroleum Exporting Countries and U.S. sanctions, with gains capped by a surprise increase in U.S. crude stockpiles.
U.S. commercial crude inventories surged by 7.2 million barrels in the week through March 29, the Energy Information Administration reported on Wednesday. Analysts in a survey of economists expected stockpiles to fall by 425,000 barrels.
Meanwhile, U.S. gasoline stocks fell by 1.8 million barrels, and distillate fuel inventories, which include diesel and home heating fuel, dropped by two million barrels.
Brent futures fell five cents to $69.32 U.S. mid-morning Wednesday. They earlier reached $69.96 U.S. — the highest since Nov. 12, when they last traded above $70.
U.S. West Texas Intermediate crude fell 26 cents to $62.32, having hit $62.99, the highest since Nov. 7.
Oil prices have been propped up for much of 2019 by efforts by OPEC and allies such as Russia, who have pledged to withhold around 1.2 million barrels per day of supply this year.
Supply from OPEC countries hit a four-year low in March. Oil production from Russia fell to 11.3 million bpd last month, but missed the country's target under the supply deal.
