Crude oil prices declined on Wednesday after a surprise increase in U.S. oil inventories for the week ended July 16.
Crude oil inventories, which measure the weekly increase in barrels of commercial crude oil held in inventory by U.S. firms, increased by 400,000 barrels in the week ending July 16 from the previous week, a report from U.S. Energy Information Administration showed Wednesday.
Analysts’ had anticipated a 1.3-million-barrel decline and a trade group on Tuesday reported a decline of 241,000 barrels for the same week. At 353.5 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year.
Light sweet crude for September delivery declined 0.42% or 35 cents to $77.23 U.S. a barrel and Brent crude futures fell 0.46% or 35 cents to $75.87 U.S. a barrel. The August contract expired Tuesday at $77.44 U.S. a barrel.
Total motor gasoline inventories increased by 1.1 million barrels last week, and are above the upper limit of the average range. The growth followed 5.5 million barrels decline in crude oil and 1.6 million barrels gain in gasoline inventories a week earlier.
Crude oil also rose after the National Hurricane Centre said that a weather system over Puerto Rico and the Dominican Republic has a 60% chance of becoming a tropical cyclone.
World oil prices remained under $78 U.S. a barrel in Asian trade Wednesday as the markets showed mixed trends.
