Oil Drops on Surprise Inventories Increase

Oil prices fell on Wednesday on signs Saudi Arabia and other big producers may increase production, and U.S. crude slid more than 1 percent on a surprise build in domestic crude stockpiles.

U.S. crude inventories rose 2.1 million barrels in the week to June 1, the Energy Information Administration said, a surprise after analysts had forecast a decrease of 1.8 million barrels. Fuel inventories also rose.

EIA also said U.S. crude output hit a record of 10.8 million barrels a day in the week. Rising production has prompted selling since global benchmark Brent LCOc1 climbed above $80 a barrel last month.

Reuters

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