Oil prices fall again as US increases supply

Crude oil prices fell again on Wednesday, following the release of data from an industry group showing a larger-than-expected build in US crude inventories last week.

The data predicting an increase of 3.2 million barrels per day is believed to have inspired worries over global oversupply, just like an increase in OPEC supply did in September.

In September, OPEC supply increased to 31.68 million barrels per day (bpd) from a specially revised 31.57 million in August, 2015.

Michael McCarthy, chief market strategist at Sydney’s CMC markets, said there is a growing concern for more build in US crude, with market forces responding to the oversupply.

“Concerns over the potential for a further build (in US crude stocks) in official data (were driving prices lower). The low volumes and market moves are reflecting that,” he said.

The larger-than-expected supply in US crude led Brent crude for December delivery to fall by 30 cents to $48.41 a barrel by 0645 GMT after settling up 10 cents in the previous session.

According to Reuters, US crude for December delivery dropped 44 cents at $45.85 a barrel after settling up one cent at $46.29.

The November contract, which expired on Tuesday, finished down 34 cents at $45.55 per barrel.

Industry data showed US commercial crude stocks climbed by a larger-than-expected 7.1 million barrels to 473 million barrels in the week to October 16, the American Petroleum Institute said.