Investing.com - West Texas Intermediate oil futures fell to a more than three-month low in North America trade on Wednesday, after data showed that oil supplies in the U.S. rose for the first time in ten weeks last week.
Crude oil for September delivery on the New York Mercantile Exchange slumped 54 cents, or 1.26%, to trade at $42.38 a barrel by 14:36GMT, or 10:36AM ET, after hitting a daily low of $42.28, a level not seen since April 20. Prices were at around $43.11 prior to the release of the inventory data
The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 1.7 million barrels in the week ended July 22. Market analysts' expected a crude-stock decline of 2.3 million barrels, while the American Petroleum Institute late Tuesday reported a supply drop of 827,000 barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, rose by 1.11 million barrels last week, the EIA said.
Total U.S. crude oil inventories stood at 521.1 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”.
The report also showed that gasoline inventories increased by 452,000 barrels. Despite being in the midst of the peak summer-driving season in the U.S., gasoline stocks are well above the upper limit of the average range, according to the EIA.
For distillate inventories including diesel, the EIA reported a decline of 780,000 barrels.
U.S. oil has been under pressure in recent weeks amid signs of an ongoing recovery in U.S. drilling activity.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery inched down 45 cents, or 0.99%, to $44.78 a barrel, after falling to a more than two-month low of $44.14 on Tuesday.
London-traded Brent futures have been weighed recently as prospects of increased exports from Libya and Iraq added to concerns that a glut of oil products will cut demand for crude by refiners.
Oil prices are down nearly 15% since peaking above $50 in early June, as high inventories of gasoline products cloud the future outlook for crude.