Oil’s rebound from a six-year low has faltered on signs the global surplus will be prolonged as Iran bids to restore output after its nuclear accord.
Oil traded near $50 a barrel in New York as US stockpiles increased, adding to a glut.
Inventories rose 2.47million barrels last week, Energy Information Administration data show, in contrast to the 2.2million barrel drop forecast by analysts surveyed by Bloomberg before the report.
A strengthening dollar is also putting pressure on commodities as it reduces the appeal of buying assets priced in the US currency. The Bloomberg Commodity Index of 22 raw materials fell as much as 1.1% to the lowest since April 2002.
West Texas Intermediate for September delivery fell 67 cents, or 1.3%, to $50.19 a barrel this morning in New York. Brent for September settlement dropped 45 cents to $56.59 on the London-based ICE Futures Europe exchange.
Saudi Arabia, the largest crude exporter, increased oil stockpiles to meet a surge in summer demand, according to a person with direct knowledge. Supplies are for operational not strategic purposes, the source said, asking not to be identified because the information is private.