The Energy Information Administration reported a huge buildup of 8.7 million barrels in US crude stocks last week to a total of 423.8 million barrels, while analysts only expected a build of 1.3 million barrels.

Gasoline stocks rose 2.2 million barrels to 251.1 million barrels, while distillate stocks fell 5.5 million barrels to 118.5 million barrels. 

Most US stock indices lost ground on Wednesday as investors assess latest corporate earnings results.

Alphabet reported weak cloud computing earnings in its quarterly results, triggering concerns about a slowdown in the company’s AI plans. 

Earlier data showed the US private sector added 183 thousand jobs in January, beating estimates of 150 thousand. 

On trading, Dow Jones fell 0.1% today as of 15:47 GMT, or 23 points to 44,552 points, while S&P 500 shed 0.2%, or 14 points to 6024 points, as NASDAQ gave up 0.5%, or 107 points to 19546 points.

Global oil prices fell in American trade on Wednesday and approached five-week lows once more after initial data showed a large US inventory buildup.

Now traders await official data from the EIA on US crude stocks, expected to show a buildup for the second straight week.

Prices are also pressured by renewed concerns about global growth amid mounting trade tensions in the US and China. 

Prices 

US crude fell 1.3% to $71.75 a barrel, with a session-high at $72.93.

Brent fell 1.2% to $75.16 a barrel, with a session-high at $76.30.

On Tuesday, US crude rose 0.6% away from a five-week trough at $70.69 a barrel, while Brent climbed 0.75% away from December 31 lows at $74.19.

Prices were boosted as Trump redeployed the campaign of extreme pressure on Iran to reduce its nuclear program, which hit Iranian crude exports in particular. 

US Stocks

Initial data from the American Petroleum Institute showed a buildup of 5.1 million barrels in US crude stocks last week, the third such increase in a row.

Thus total stocks reached 425.2 million barrels, the highest since the week ending December 13, in a negative sign of demand in the US.

Now traders await the official US inventory report later today from the EIA, expected to show an increase of 2.4 million barrels.

Trade Tensions 

Since the start of US 10% tariffs on Chinese imports on Tuesday, Beijing responded with similar tariffs on US imports.

Such trade tensions could hurt demand on oil and impact prices.

The US private sector added 183 thousand new jobs in January, beating estimates of an addition of 148 thousand, and compared to December's 122 thousand addition.