Oil falls ahead of EIA weekly report

Oil prices continued to fall as the US market opened on Wednesday, and pulled back from multi-year highs, to head for the second daily loss in 3 days, weighed down by a build in US crude inventories, according to the American Petroleum Institute's preliminary data, and ahead of the Energy Information Administration's official report later today.

US crude fell 1.25% to $81.40 a barrel, after opening at $82.43, and hit a high at $82.58, and Brent crude fell 1.3% to $84.04 a barrel, after opening at $85.16, and hit a low at $85.22.

The US crude gained 0.2% yesterday, and Brent crude rose 1.2%, thanks to expected rise in global demand.

The US crude hit a 7-year high at $83.85 on Monday, and Brent crude hit its 3-year high of $86.02, due to concerns over a market deficit during the fourth quarter of this year.

The American Petroleum Institute reported in preliminary data that the US crude inventories rose 3.3 million barrels to 432 million barrels during the week ending October 15, which is the highest level since the week ending August 27, while analysts forecast a rise by 2 million barrels.

The US Energy Information Administration's official data will be released later today, amid forecasts for inventories to rise by 2.1 million barrels.

While the US output rose 100,000 barrels last week, with the total at 11.4 million barrels per day, which is the highest level since the week ending August 27.