WASHINGTON (dpa-AFX) - Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in crude oil inventories in the U.S. in the week ended October 18th.
Uncertainty about the outlook for demand from China, and a stronger dollar also weighed on oil prices, while persisting Middle East tensions limited the commodity's downside.
The dollar index climbed to 104.57, gaining nearly 0.5% and treasury yields continued to rise as traders pondered the prospect of a Donald Trump presidency.
It is feared that Trump policies including tariffs and restrictions on undocumented immigration could increase inflation and keep interest rates relatively high for a longer-than-anticipated period.
West Texas Intermediate crude oil futures for December ended down $0.97 or about 1.35% at $70.77 a barrel.
Brent crude futures dropped to $74.96 a barrel, losing $1.08 or about 1.42%.
The EIA data said crude oil inventories jumped by 5.5 million barrels last week after slumping by 2.2 million barrels in the previous week. At 426.0 million barrels, U.S. crude oil inventories remain about 4% below the five-year average for this time of year, the EIA said.
The report also said gasoline inventories rose by 0.9 million barrels last week but are about 3% below the five-year average for this time of year.
Meanwhile, distillate fuel inventories, which include heating oil and diesel, decreased by 1.1 million barrels last week and are about 9% below the five-year average for this time of year.
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