Oil prices fell today after a sharp spike the previous day as the market reacted to a much larger-than-expected increase in US crude reserves.
US crude dropped $1.22 to $113.31 a barrel, while London's Brent North Sea crude for October shed 95 cents to $112.30.
The US government's Department of Energy said Wednesday that US crude oil stockpiles climbed 9.4 million barrels by last Friday. Analysts had forecast a much smaller gain of 800,000 barrels.
The DoE said US gasoline or petrol reserves fell 6.2 million barrels last week, compared with market expectations for a drop of 2.4 million barrels.
Oil prices had closed up by more than $1 yesterday after OPEC member Venezuela said it would ask the cartel at its September meeting to cut production if downward price pressure continues.
Oil prices are down from record highs above $147 dollars set in July as weak economic growth is denting global demand for energy. Oil fell close to $110 in early trade yesterday as Tropical Storm Fay missed energy production facilities in the Gulf of Mexico.
