US Oil Loses $1 On Cushing Build, Libya Supports
NEW YORK, Jan 8 (Reuters) - U.S. oil fell by more than $1 on Wednesday, settling at its lowest point in six weeks, after government data showed a large build in crude stockpiles at the U.S. benchmark delivery point.
Brent crude erased early gains and also settled lower, but its losses were limited by continued concerns over Libya's oil supply. U.S. crude's sharper losses boosted Brent's premium over the domestic benchmark to a fresh one-month high of close to $15 a barrel.
The U.S. stock builds come just ahead of refiners entering maintenance season, which will cut in to demand for crude, said Stephen Schork, editor of The Schork Report in Villanova, Pennsylvania.
"It's a combination of more supply coming into the market with weak demand and that is indeed weighing on prices," he said.
Crude stockpiles at the U.S. oil futures contract delivery point in Cushing, Oklahoma, rose by more than a million barrels, data from the U.S. Energy Information Administration showed on Wednesday.
Meanwhile, gasoline and diesel stocks rose sharply as refiners continued to process the fuels at a breakneck pace.
Brent crude settled down 20 cents at $107.15. U.S crude ended $1.34 lower at $92.33 a barrel. U.S. oil has ended lower six out of the last seven sessions as growing supplies upend the market.
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