 "Oil falls towards $61 as ample supplies weigh")
Oil fell towards $61 a barrel on Thursday as a further jump in US crude stockpiles underlined currently ample supplies, countering indications of a coming recovery in global demand.
The US government's latest supply report released on Wednesday said domestic crude inventories rose last week to 434.1 million barrels, hitting a seasonal record high for the seventh week.
Brent crude fell 40 cents to $61.24 by 1317 GMT, after jumping five per cent on Wednesday. US crude fell 96 cents to $50.03, following a three per cent gain in the previous session.
"The renewed sharp rise in US crude oil stocks ... points to a market that is still oversupplied."
Brimming US crude supplies are increasing the discount at which US crude is trading to Brent. The spread reached $11.81 on Thursday, the widest since January 2014.
Brent collapsed in 2014, falling from $115 reached in June on global oversupply. The decline deepened after the Organization of the Petroleum Exporting Countries (Opec) chose to defend market share against rival supply sources, rather than cut its own output.
The price has rallied almost 35 per cent from a near six-year low of $45.19 reached in January, supported by signs that lower prices are starting to reduce investment in US and other non-Opec supply.
The US government's latest supply report released on Wednesday said domestic crude inventories rose last week to 434.1 million barrels, hitting a seasonal record high for the seventh week.
Brent crude fell 40 cents to $61.24 by 1317 GMT, after jumping five per cent on Wednesday. US crude fell 96 cents to $50.03, following a three per cent gain in the previous session.
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"At present, it would appear that Brent is bottoming out at $60 a barrel," said Carsten Fritsch, analyst at Commerzbank.
"The renewed sharp rise in US crude oil stocks ... points to a market that is still oversupplied."
Brimming US crude supplies are increasing the discount at which US crude is trading to Brent. The spread reached $11.81 on Thursday, the widest since January 2014.
Brent collapsed in 2014, falling from $115 reached in June on global oversupply. The decline deepened after the Organization of the Petroleum Exporting Countries (Opec) chose to defend market share against rival supply sources, rather than cut its own output.
The price has rallied almost 35 per cent from a near six-year low of $45.19 reached in January, supported by signs that lower prices are starting to reduce investment in US and other non-Opec supply.