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Oil down more than 2% after big US crude stock build
[NEW YORK] Oil prices extended their losses on Wednesday, with US crude futures falling more than 2 per cent, after an unexpected large build in US crude stockpiles renewed worries about oversupply in the market.
The US Energy Information Administration (EIA) reported crude inventories rose 2.5 million barrels last week, versus analysts forecasts for a drawdown of 500,000 barrels.
US West Texas Intermediate (WTI) futures were down US$1.35, or 2.8 per cent, at US$46.75 a barrel by 10:47 am EDT (1448 GMT).
Brent crude futures fell US$1, or 2 per cent, to US$48.96.
"The report is bearish, especially relative to expectations, led by the rise in crude oil inventories that was due to refinery utilization declines and large rise in imports," said John Kilduff, partner at New York energy hedge fund Again Capital.