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.