Investing.com – U.S. crude oil inventories rose more than expected last week, adding to selling pressure on Wednesday.
The EIA data showed that crude oil inventories increased by 3.58 million barrels in the week to Nov. 23.
That was compared to forecasts for a stockpile build of 0.77 million barrels, after a build of 4.85 million barrels in the previous week.
The EIA report also showed that gasoline inventories unexpectedly fell by 0.76 million barrels, compared to expectations for a build of 0.64 million barrels, while distillate stockpiles registered a surprise gain of 2.61 million barrels, compared to forecasts for a decrease of 0.86 million.
U.S. crude prices were trading down 1.53% to $50.77 a barrel by 10:34 AM ET (15:34 GMT), compared to $51.09 prior to the publication.
London-traded Brent crude futures were off 1.18% to $59.69 a barrel, compared to $59.91 ahead of the release.
Oil prices have been under pressure since hitting a four-year high on Oct. 3 with U.S. crude down more than 30% as traders fret over increasing production and the global economic impact of a potential trade war between the U.S. and China dampening appetite.
With U.S. and Saudi production near record highs, concerns have heightened over a global supply glut driving prices lower.
OPEC will meet on Dec. 6 to discuss output policy, with Saudi Arabia reportedly leading a proposal to cut production by at least 1 million barrels per day.
But Saudi Arabia said Wednesday that it would not take on the task of the reduction by itself, according to a Reuters report, dampening hopes for a significant move to put the brakes on recent declines.