OIL TUMBLES 2% AFTER UNEXPECTED BUILD IN INVENTORIES

Oil prices tumbled more than two per cent on Wednesday, hitting a two- month low, after the U.S. government reported a surprise build in crude and gasoline inventories during the peak summer driving season. The U.S. Energy Information Administration said domestic crude stockpiles rose 1.7 million barrels, against analysts’ forecasts for a drawdown of 2.3 million barrels. Brent was down US$1.03, or 2.4 per cent, at US$43.83 a barrel by midday Wednesday after hitting US$ 43.62 earlier, its lowest since May 10. WTI crude fell 90 U.S. cents, or two per cent, to US$42.02 a barrel. It slid earlier to US$41.93, its lowest since April 20. “Refiners are dialling back amid faltering profit margins,” said Matt Smith, analyst at New York-based oil cargoes tracker Clipperdata.