BAGHDAD Oil futures fell more than 1 percent on Wednesday, continuing losses after falling more than 3 percent in the previous session, following government data showing a sharp increase in US refined product inventories.

Brent crude fell 69 cents, or 1.1 percent, to settle at $ 63.66 per barrel. WTI crude fell 84 cents, or 1.5 percent, to close at $ 56.78 a barrel. The crude fell more than 3 percent on Tuesday.

While data from the US Energy Information Administration showed a larger-than-expected decline in US crude inventories last week, it kept a significant increase in refined product inventories at low prices.

Crude stocks fell 3.1 million barrels last week, while analysts expected a 2.7 million barrel drop.

Gasoline inventories rose 3.6 million barrels, while analysts in a Reuter’s poll forecast a 925,000 barrel drop.

Distillate stocks, including diesel and heating oil, grew by 5.7 million barrels, against expectations of a 613,000 bpd increase, according to data from the Energy Information Administration.

“Gasoline stocks and distillates are rising strongly, giving the report a tone of betting on lower prices,” said Carsten Fritsch, oil market analyst at Commerzbank. “The fact that oil product inventories have increased strongly is due to weaker demand.” He added.

Source: National Iraqi News Agency