Oil Drops After Larger-Than-Expected U.S. Supply Gain

(Bloomberg) -- Oil extended declines after a U.S. government report showed crude stockpiles increased by more than expected last week. 

Futures in New York fell as much as 2% on Wednesday. Domestic crude inventories rose 4.27 million barrels last week, according to an Energy Information Administration report. The industry-funded American Petroleum Institute reported a 2.32 million-barrel gain on Tuesday. Meanwhile, inventories at the nation’s biggest storage hub at Cushing, Oklahoma, fell by the most since January. 

Crude also traded lower after Iran and the European Union agreed to restart negotiations on the revival of the 2015 nuclear deal by the end of November, Iran’s Deputy Foreign Minister Ali Bagheri Kani said on Twitter.

West Texas Intermediate crude futures for December delivery fell $1.27 to $83.38 a barrel at 10:39 a.m. on the New York Mercantile Exchange. Brent for December settlement slid $1.44 to $84.96 a barrel on the ICE Futures Europe exchange.

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