 "Oil slides 4% on bearish US stock data")
Oil prices fell more than four per cent on Wednesday after the US government stunned the market with a raft of bearish inventory oil data that added to renewed concerns over a global glut of oil.
US crude oil stockpiles fell less than expected last week, while distillate inventories rose the most since January and gasoline posted a surprise build, the Energy Information Administration (EIA) said.
The US inventory report reported added pressure to the already bearish market after the Paris-based International Energy Agency warned that a global supply glut was threatening market recovery.
"A surprising build in gasoline in the peak of US driving season and a very large build in heating oil will set the tone for lower prices as we go forward," said Tariq Zahir, a trader in crude oil spreads at Tyche Capital Advisors in New York.
"The products markets will continue to put weakness in the energy complex."
Both crude benchmarks gained nearly five per cent on Tuesday on shortcovering and technical buying in a recovery from two-month lows hit earlier in the week. In Wednesday's session, US gasoline tumbled four percent too, while heating oil, a proxy for ultra low sulfur diesel, slumped nearly six per cent. The US government said crude inventories fell 2.5 million barrels last week, less than a 3 million-barrel drop forecast in a Reuters poll and contradicting trade group American Petroleum Institute's report late on Tuesday showing a crude build of 2.2 million barrels.
Distillate stockpiles, which include diesel and heating oil, rose 4.1 million barrels, versus expectations for a 256,000-barrel increase, the EIA data showed.
Gasoline stocks rose unexpectedly by 1.2 million barrels, compared with a 432,000-barrel drop forecast.
US crude oil stockpiles fell less than expected last week, while distillate inventories rose the most since January and gasoline posted a surprise build, the Energy Information Administration (EIA) said.
The US inventory report reported added pressure to the already bearish market after the Paris-based International Energy Agency warned that a global supply glut was threatening market recovery.
"A surprising build in gasoline in the peak of US driving season and a very large build in heating oil will set the tone for lower prices as we go forward," said Tariq Zahir, a trader in crude oil spreads at Tyche Capital Advisors in New York.
"The products markets will continue to put weakness in the energy complex."
Both crude benchmarks gained nearly five per cent on Tuesday on shortcovering and technical buying in a recovery from two-month lows hit earlier in the week. In Wednesday's session, US gasoline tumbled four percent too, while heating oil, a proxy for ultra low sulfur diesel, slumped nearly six per cent. The US government said crude inventories fell 2.5 million barrels last week, less than a 3 million-barrel drop forecast in a Reuters poll and contradicting trade group American Petroleum Institute's report late on Tuesday showing a crude build of 2.2 million barrels.
Distillate stockpiles, which include diesel and heating oil, rose 4.1 million barrels, versus expectations for a 256,000-barrel increase, the EIA data showed.
Gasoline stocks rose unexpectedly by 1.2 million barrels, compared with a 432,000-barrel drop forecast.