Oil edges lower after industry group reports jump in US stockpiles
Oil prices fell on surprise U.S. stockpile increase, with concerns over weak demand. The U.S. summer driving season and consumer confidence decline contributed to market worries, along with a stronger dollar. Brent crude dropped to $84.82 a barrel.
fell in early Asian trade on Wednesday after an reported a surprise jump in U.S. stockpiles, fueling concerns about weaker-than-expected demand in the top oil consuming nation.fell 19 cents, or 0.2%, to $84.82 a barrel by 0023 GMT. U.S. fell 11 cents, or 0.1%, to $80.72 per barrel.
The (API) reported U.S. crude oil stocks rose by 914,000 barrels in the week ended June 21, according to market sources briefed on the data. Analysts polled by Reuters expect crude stocks to have declined by nearly 3 million barrels last week.
Official U.S. government data on oil and fuel stockpiles is due at 1430 GMT.
Concerns around a weak start to the U.S. were partly responsible for a slump in oil prices in the previous session. API reported a 3.84 million barrel jump in U.S. last week, the sources said, compared with analysts' expectation of a 1 million barrel decline.
Easing U.S. consumer confidence this month added to worries about the , and a rising U.S. dollar weighed on oil and other commodities after hawkish comments from Federal Reserve officials, ANZ Bank analysts said.
The U.S. dollar index extended gains slightly on Wednesday after advancing about 0.1% against a basket of currencies in the previous session.
A stronger dollar makes dollar-denominated oil more expensive for investors holding other currencies.
