Oil falls as U.S. inventories exceed forecast

Oil falls as U.S. inventories exceed forecast

Oil futures dropped on Wednesday as the build in U.S. crude inventories exceeded forecasts, raising concerns of oversupply.

Brent crude lost 2 cents to $42.61 per barrel, while U.S. West Texas Intermediate crude futures slid 0.1%, or 4 cents, to $40.33 per barrel.

U.S. crude stocks rose 1.7 million barrels last week, significantly bigger than the 300,000-barrel build forecasted by analysts. 

However, U.S. gasoline and distillate stocks fell, hinting at a recovering fuel consumption as economies ease from lockdowns.

Both Brent and WTI contracts have hit their highest levels since their record declines in March.

Still, the oil market is under pressure due to a rising number of new infections in the United States and elsewhere, risking an improving fuel demand.

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