Oil prices slid more than 3.5 per cent yesterday after the United States (U.S.) government reported an unexpected increase in inventories of crude and gasoline, fanning fears that output cuts by major world oil producers have not drained a global glut very much.
Brent crude prices were at $48.20 per barrel, down 3.8 per cent, or $1.92 a barrel.
U.S. crude futures fell 4.6 per cent, or $2.23 a barrel, to $45.96 a barrel. Crude slid to its lowest level since May 9, with U.S. benchmark futures CLc1 down more than 10 per cent in 10 days of trading.
Crude stocks in the U.S grew 3.3 million barrels to 513 million barrels, according to the U.S. Energy Information Administration (EIA). That confounded forecasters who had predicted a drop of 3.5 million barrels, especially a day after preliminary data from the American Petroleum Institute indicated an even bigger drop.
Gasoline inventories also unexpectedly rose, imports increased, and exports dropped, the EIA data showed.