Oil reverses gains on surprise U.S. crude build

Commodities

Oil prices were largely unchanged on Wednesday, giving up earlier gains after the U.S. government reported a surprise crude stockpile build.

Crude inventories rose 1.1 million barrels in the week ended Aug. 5, compared with analysts' expectations for a decrease of 1.0 million barrels, the U.S. Energy Information Administration (EIA) said. [EIA/S]

U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 5 cents to $42.75 per barrel by 10:50 a.m. EDT (1450 GMT).

U.S. gasoline futures RBc1 rose nearly 1 percent, extending gains, after the EIA also reported a larger-than-expected gasoline drawdown of 2.8 million barrel, but last reversed gains and was trading at down nearly 1 percent.

Brent crude futures LCOc1 rose by 2 cents to $45 per barrel.

"We do feel that any further strength in the spot price will be met with selling," said Tariq Zahir, trader in crude oil spreads at Tyche Capital Advisors in New York.

"At this time of year, we should be drawing down in crude inventories and we are still building."

Source by Reuters