Oil extended losses after an industry report showed a surprise jump in U.S. crude stockpiles last week.
West Texas Intermediate (WTI) crude futures fell as much as 3.2% after the close in New York. The American Petroleum Institute reported that U.S. crude stockpiles rose by 8.73 million barrels last week. Gasoline supplies also gained 1.12 million barrels, according to the report.
If confirmed by government data Thursday, the crude build would reverse two weeks of inventory declines — an indication that record supply cuts are not draining a massive supply glut fast enough.
The API report also showed supplies at the key storage hub of Cushing, Oklahoma, fell by 3.37 million barrels, which would be the third consecutive weekly decline. The Energy Information Administration will release its weekly inventory report Thursday morning.