Oil futures weakened Wednesday after the US Energy Information Administration reported a larger-than-expected crude build last week.
NYMEX May crude settled down $1.66 at $39.79/b. ICE May Brent settled $1.32 lower at $40.47/b.
US commercial crude oil stocks rose 9.357 million barrels to 532.535 million barrels in the week ended March 18, Energy Information Administration data showed Wednesday.
Crude stocks have increased six straight weeks, pushing further into record-high territory. Crude stocks exceeded by 38% the five-year (2011-15) average for this time of year.
Analysts surveyed Monday by Platts were looking for an increase of 2.7 million barrels.
The oil complex came under pressure Tuesday evening when the American Petroleum Institute reported an 8.8 million-barrel rise in crude stocks last week.
NYMEX May crude never turned positive Wednesday, and settled only four cents above its intraday low. The May/June spread widened 9 cents to minus $1.08/b.
"The inventory situation is not giving any indication that the supply-demand balance is tightening," said Kyle Cooper, director of research at IAF Advisors.
US imports should remain "robust" as the market contango makes storage profitable, attracting crude from abroad, while increased Iranian exports could divert barrels toward the US, he said.
Crude imports were up 691,000 b/d last week to 8.384 million b/d.
NYMEX April RBOB settled down 4.30 cents at $1.4541/gal even though US gasoline stocks decreased 4.642 million barrels to 245.074 million barrels.
It was the fifth consecutive draw. Analysts expected a smaller decline of 1.3 million barrels.
Front-month NYMEX RBOB has been rallying. On Thursday, that contract reached $1.5134/gal at one point, its highest level since January 5, before turning lower.
"Gasoline demand has been off the charts," said Carl Larry, oil consultant at Frost & Sullivan. "If we keep on this pace, we should see record demand this summer."
NYMEX April ULSD settled 4.81 cents lower at $1.2040/gal. EIA data showed distillate stocks rose 917,000 barrels to 162.26 million, versus analysts' expectations of a 1.7 million-barrel decline.
