22 July 2015, News Wires – Oil prices fell on Wednesday after an unexpected rise in US crude stocks, adding to a picture of global oversupply that has dragged down values over the past year, Reuters reported.
Industry data released on Tuesday by the American Petroleum Institute (API) showed crude inventories at the Cushing, Oklahoma, hub rose 2.3 million barrels last week, compared with analyst expectations for a decrease of the same volume.
“The US crude oil stocks build reported by the API last night is weighing on prices,” Tamas Varga, analyst at London brokerage PVM Oil Associates, told the news wire.
US crude held above $50 a barrel, trading down $0.64 at $50.22 at 11:40am GMT, 1.2% lower than the previous session’s settlement, Reuters said.
The August contract, which expired on Tuesday, settled at $50.36 a barrel on its last day of trade, after slipping as low as $49.77 during the session, its weakest point in more than three months, the report continued.