Oil prices fall after report of surprising rise in US crude inventories

Oil prices on global markets are falling after a report of a surprising rise in US crude inventories. At around 18:30 CEST, North Sea Brent crude was down roughly 0.8 percent, slipping back below 65 dollars per barrel. US light crude West Texas Intermediate (WTI) was also down 0.8 percent, trading near 61.5 dollars per barrel.

The US government's Energy Information Administration (EIA) announced this afternoon that US crude inventories rose by 1.3 million to 443.2 million barrels last week. Analysts polled by Reuters had forecast a fall of 1.3 million barrels. According to EIA data, inventories of gasoline and other petroleum products also increased last week.

Oil prices had been rising before the EIA released its inventory data. Reports of possible Israeli plans to attack Iranian nuclear facilities had raised concerns about disruptions to oil supplies from the Middle East. Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC).

Israeli attacks could disrupt Iranian oil exports. Reuters also reported concerns that Iran could respond to the attacks by blocking shipping in the Strait of Hormuz, an important route for oil transport.

Oil prices in dollars per barrel (about 159 litres):