MTECHTIPS:-Oil prices drop to session lows after supply bump
Oil prices fell to session lows Wednesday after data showing an unexpected build in U.S. oil stockpiles added to concerns over a global supply glut. On the New York Mercantile Exchange, crude oil for August delivery was last down 2.81% to $57.75 a barrel, from around $58.27 ahead of the report. Brent crude for August delivery, the global benchmark was down 1.96% to $62.34 from $62.73 earlier. The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 2.4 million barrels in the week ended June 26. The consensus forecast had been for a decrease of 2 million barrels. At 465.4 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years. Total motor gasoline inventories fell by 1.8 million barrels last week while, while distillate stockpiles increased by 0.4 million barrels. The unexpected increase in oil stockpiles added to concerns over oversupply after the EIA said in its monthly report on Tuesday that U.S. crude production rose by 9,000 barrels a day to 9.7 million barrels a day in April, the highest level since May 1971. Also Tuesday the American Petroleum Institute reported that U.S. oil stockpiles unexpectedly rose by 1.9 million barrels last week.