Oil pulls back on initial report that showed an unexpected jump in the U.S. Stockpiles

Oil prices - Investors Mart

Oil prices sharply pulled back as the preliminary data reached the market and has shown that the U.S. Crude stockpiles unexpectedly rose last week.

The American Petroleum Institute reported an unexpected 851,000 barrel increase in the U.S. crude inventories in the week through June 23.

Crude stocks were expected to fall by 3.25 million barrels, according to a survey of analysts by S&P Global Platts. In a recent survey, it was shown that analysts anticipated a 2.5 million barrel drop.

U.S. Stockpiles in Cushing, Oklahoma delivery hub for the WTI contract was down by 678,000 barrels, according to the API data. This is considered the most accurate in the API figures.

Oil prices were up in Tuesday's session which saw a 2 percent increase as traders covered bets that the oil prices will again sink and the market expected a drop in U.S. crude inventories.

Technical analysts have identified support level between $40.40 and $40.70, according to the global head of energy, Tom Kloza, from price Information Service.

The U.S. West Texas Intermediate crude eased in the session and was last seen trading at $43.70 after ending Tuesday's session at $44.23 which was up by 86 cents.

The International benchmark Brent Crude futures were up by 33 cents and was traded at $46.16 per barrel.

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