Oil prices slide on surprise increase in U.S. crude inventory

(Bloomberg) --Oil slid after a U.S. government report showed a surprise increase in domestic crude stockpiles.

Futures in New York fell as much as 1% on Wednesday. Domestic crude inventories rose 1 million barrels last week, according to an Energy Information Administration report. The industry-funded American Petroleum Institute reported a 2.5 million-barrel decline on Tuesday. Meanwhile, inventories at the nation’s biggest storage hub at Cushing, Oklahoma, fell 34,000 barrels last week.

Prices fluctuated earlier in the session with traders continuing to assess the Biden administration’s plans to quell rising energy prices. The White House didn’t announce a strategic petroleum reserve release on Tuesday and said it continues to look at all the tools it has available to limit the impact of high prices on consumers.

West Texas Intermediate crude futures for December delivery fell 51 cents to $83.70 a barrel at 10:34 a.m. on the New York Mercantile Exchange. Brent crude for January settlement increased 24 cents to $84.52 a barrel on the ICE Futures Europe exchange.