Oil prices fell below $62 a barrel on Wednesday, after a report showed a rise in U.S. crude inventories, while concerns about the impact on global supplies of U.S. sanctions on Venezuela faded.
U.S. crude inventories rose by 2.5 million barrels last week, according to industry group, the American Petroleum Institute, and gasoline stocks also increased.
The government’s official supply report is due later on Wednesday.
“The fact that U.S. crude oil and gasoline stocks rose more sharply than expected, as reported by the API after close of trading yesterday, is weighing on prices,” said Carsten Fritsch, analyst at Commerzbank.
Brent crude, the global benchmark, slipped 49 cents to 61.49 dollars a barrel as of 1053 GMT. U.S. West Texas Intermediate (WTI) crude was down 55 cents at 53.11 dollars. The U.S. announced sanctions on Venezuela’s state oil company last week, a move which could further curb supplies, although the development has yet to result in steep price gains.
“It would seem that the market is really not too worried yet about the potential loss of Venezuelan barrels,” said analysts at JBC Energy in a report.