Fundamental Comment

Oil prices widen losses after unexpected US crude inventories build


Oil prices traded lower on Wednesday after the release of a report showing an unexpected build in U.S. crude stockpiles last week. 

The Energy Information Administration (EIA) report signaled a rise by 5.8 million barrels in U.S. crude inventories in the week ended July 13, following a 12.6 million-barrel increase a week earlier. Analysts had estimated a fall by 3.4 million barrels.

U.S. crude stocks were up by 629,000 barrels last week, according to industry report released by the American Petroleum Institute (API) late Tuesday.

A report due on Friday by oilfield services company Baker Hughes will provide an update on the number of rigs drilling for oil in the United States.

Crude oil futures traded lower at $67.13 a barrel after opening today at $67.57. Brent crude also futures traded lower at $71.40 a barrel.

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