Oil prices fell this evening after US government figures showed a rise in crude stockpiles and weak economic data raised doubts about a recovery in oil demand in the world's largest energy consumer.
US crude fell 81 cents to $70.61 a barrel, giving up some of the gains that helped it rise 13% since late last week. London Brent crude fell 21 cents to $74.07 a barrel.
US crude inventories rose by more than expected last week, according to weekly data from the US Energy Information Administration (EIA).
Crude stockpiles rose by 1.7 million barrels in the week to July 31, against forecasts for an 800,000-barrel increase, as usage of refineries dropped.
Oil was already lower before the release of the inventory figures as doubts over economic recovery and demand for fuel resurfaced after weak US services sector data depressed stock markets both sides of the Atlantic.
Expectations that a turnaround in the global economy could lift sagging oil demand has helped send crude up from lows below $33 a barrel in December, with energy traders keeping an eye on stock markets for signs of an economic rebound.
