Oil prices fell on Wednesday on signs that Saudi Arabia and other big producers may increase production and following a surprise build in U.S. crude stockpiles.
U.S. crude inventories rose 2.1 million barrels in the week to June 1, the Energy Information Administration said, a surprise after analysts had forecast a decrease of 1.8 million barrels. Fuel inventories also rose.
EIA also said U.S. crude output hit a record of 10.8 million barrels a day in the week. Rising production has prompted selling since global benchmark Brent climbed above $80 a barrel last month.
"The continuing increase in crude oil production is weighing on the market, and quite significantly compared to this time last year," Andrew Lipow, president of Houston-based Lipow Oil Associates. U.S. oil production is up 1.5 million bpd from a year earlier.