Oil prices dropped on Wednesday after US data pointed to an unexpected build in crude and gasoline stockpiles. During the week ended June 1, US crude oil inventories increased by 2.1m barrels from a week ago. Gasoline stockpiles grew by 4.6m barrels, while distillate fuels — which include diesel — were up by 2.2m barrels.
Analysts had been looking for crude inventories to decrease by 1.8m barrels, and smaller builds for gasoline and distillates of 587,000 and 784,000 barrels, respectively. The data weighed on oil prices, which extended small losses after the release. A barrel of Brent crude, the international benchmark, was down 0.89 percent to $74.71, while West Texas Intermediate, the US standard, dropped 1.45 percent to $64.57 a barrel. The surprise build in US inventories has compounded pressures on oil ahead of a meeting between major producers in Vienna set to take place June 22-23, at which an update is expected on a possible output increase later this year.