Oil prices fell in early trade on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Crude stockpiles rose by 1 million barrels in the week to Feb. 19, the American Petroleum Institute reported on Tuesday, against estimates for a draw of 5.2 million barrels in a Reuters poll.U.S. West Texas Intermediate crude futures were down 55 cents or 0.9per cent at US$61.12 a barrel at 0136 GMT, after slipping 3 cents on Tuesday.
Investors will be awaiting confirmation from the U.S. Energy Information Administration later on Wednesday that crude inventories rose last week, despite the hit to shale oil production amid the unprecedented icy spell in the U.S. south."The key question is how quickly does U.S. oil supply recover. It looks like supply will recover faster than refineries, and supply is going to outpace demand in the next few weeks.
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