Oil falls towards $71 after bearish API stockpile data

Oil falls towards $71 after bearish API stockpile data

Perth: Oil gave up some of the previous session’s 2% gains and fell towards $71 a barrel on Wednesday, weighed down by an industry report that showed a surprise build in US crude oil stockpiles.

US crude fell 40 cents to $71.36 a barrel by 0106 GMT. The contract rose $1.84 to settle at $71.55 a barrel on Tuesday.

US crude oil inventories rose 276,000 barrels to 337.2 million in the week ended 19 Sept, due to higher imports that rose 219,000 barrels per day and slower refinery runs which dipped 92,000 bpd, the API said in its weekly report.

China’s apparent oil demand rose 2.9% in August from a year earlier, the fifth consecutive rise, as refiners kept production at robust rates and proactive economic policies continue to propel industrial activities.

China’s CNOOC Ltd said on Friday it was seeking recovery plans after Typhoon Koppu blasted its Huizhou oifields.