Investing.com

Investing.com - West Texas Intermediate oil futures extended losses on Wednesday, after data showed that oil supplies in the U.S. rose unexpectedly last week.



On the New York Mercantile Exchange, crude oil for delivery in August dropped 0.43%, or 46 cents to trade at $105.58 a barrel during U.S. morning hours. Prices were at $105.88 a barrel prior to the release of the supply data.



U.S. oil futures ended down 0.13%, or 14 cents, on Tuesday to settle at $106.03. New York-traded oil futures were likely to find support at $105.25 a barrel, the low from June 24 and resistance at $107.45 a barrel, the high from June 23.



The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories increased by 1.7 million barrels in the week ended June 20, compared to expectations for a decline of 1.6 million barrels.



Total U.S. crude oil inventories stood at 388.1 million barrels as of last week.



The report also showed that total motor gasoline inventories increased by 0.7 million barrels, below forecasts for a gain of 1.4 million barrels, while distillate stockpiles rose by 1.2 million barrels, above expectations for an increase of 0.9 million barrels.



Meanwhile, data released earlier showed that the U.S. economy contracted at an annual rate of 2.9% in the first three months of the year, compared to the consensus forecast for a decline of 1.7%.



U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.



The difference between the second and third estimate was the largest since records began in 1976, the Commerce Department said.



The data showed personal consumption grew 1.0% in the three months to March, below expectations for a 2.4% increase and down from an initial estimate of 3.5%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.



A separate report showed that U.S. durable goods orders fell 1.0% in May, while core durable goods orders fell 0.1%. Market expectations had been for an increase of 0.2% and 0.4%, respectively.



Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery dipped 0.83%, or 94 cents, to trade at $113.52 a barrel.



Concerns about ongoing violence in Iraq lingered after local media reported that Syrian warplanes struck targets in western Iraq, killing at least 50 people.



However, oil prices have failed to break higher as the fighting in Iraq has yet to spread to the southern part of the country, which is home to more than 80% of Iraq’s oil output.



Iraq produced approximately 3.5 million barrels a day of oil last month, making it OPEC’s second-biggest oil producer behind Saudi Arabia.





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