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Stockpile worries pull oil lower again

Oil prices extended a run of losses this evening as upbeat US economic data failed to halt concerns about high levels of stockpiles in the world's largest energy consumer. US crude for October fell $1.45 to $69.98 a barrel, while Brent crude lost 90 cents to $70.75.

The losses came after back-to-back reports this week showed that crude oil inventories rose unexpectedly in the US last week due to a surprise rebound in imports and continued weak demand.

The reports from the American Petroleum Institute and the US Energy Information Administration re-ignited worries that the end of peak summer fuel consumption in the US could spell further increases in stockpiles.

News that the US economy had contracted more slowly than expected at 1% in the second quarter and a drop in US jobless claims failed to keep oil from extending into its third day of losses.

Analysts said oil prices were unlikely to push much higher in the near term, after surging around 135% since February to a 10-month peak of $75 on Tuesday.