Oil prices under pressure

Oil prices under pressure

SINGAPORE (Reuters): Oil prices stayed under downward pressure on Wednesday as crude stocks in the United States showed another big jump for the second week in a row, all but wiping out an inventory deficit versus a year ago.

North Sea benchmark Brent crude opened electronic dealings seven cents down at $24.55 a barrel, while U.S. light crude retreated five cents to $26.07.

The American Petroleum Institute (API) industry group recorded a 7.6 million barrel surge in U.S. crude inventories to 292.90 million barrels in the week to March 16.

The increase bucked market expectations of a more moderate 2.5 million build and means that crude tanks in the United States have risen more than 17 million barrels in two weeks after sinking to 25-year lows at the end of February.

"This is an unexpected build and exactly what the crude market didn't want right now," said Peter Beutel of Cameron Hanover.

Bears will also be supported by news from the United Nations that Iraqi crude exports are running at the highest level since October.