Oil prices fell to 10-month lows after government figures showed an increase in U.S. production to highest levels since Aug 2015.
U.S. crude oil and gasoline stockpiles fell last week, while distillate inventories rose, the Energy Information Administration said on Wednesday. Crude inventories fell 2.5 million barrels in the week to June 16, surpassing analysts' expectations for a decrease of 2.1 million barrels, as imports rose marginally by 56,000 barrels per day. Crude stocks at the Cushing, Oklahoma, delivery hub for U.S. crude futures fell by 1.08 million barrels, EIA said.
Investor sentiment continues to be battered by data showing that the market remains awash in surplus oil.