Oil slips as US inventories up

london — Oil dropped further below $56 a barrel on Wednesday after an industry report pointed to a large rise in crude inventories in the United States, renewing oversupply concerns despite Opec output curbs.

US crude inventories rose by a more-than-forecast 11.6 million barrels last week, data from industry group the American Petroleum Institute showed, ahead of the government’s supply report due later on Wednesday.

Brent crude, the international benchmark, was down 29¢ at $55.63 a barrel at 0950GMT. US crude fell 40¢ to $52.74.

If the API report of an inventory rise is confirmed by the USEnergy Information Administration report at 1530GMT, it would be the ninth straight week of increases. Analysts had forecast a 1.9 million-barrel inventory rise. —