Oil dips after large build in US fuel inventories

Oil prices settled down just over 1% on Wednesday after US data showed surprisingly large build in gasoline and diesel inventories, swelling fuel supplies with the Organization of the Petroleum Exporting Countries and allies (OPEC+) planning more output and trade tensions clouding the energy demand outlook.

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Brent crude futures closed down 77 cents, or 1.2%, at $64.86 a barrel. US West Texas Intermediate (WTI) crude settled 56 cents, or 0.9% lower at $62.85.

US gasoline stocks swelled by 5.2 million barrels, the Energy Information Administration said. Analysts polled by Reuters had expected a rise of 600,000 barrels.

Distillate stockpiles rose by 4.2 million barrels compared with expectations for a rise of 1 million barrels.

Crude inventories dropped by 4.3 million barrels. Analysts polled by Reuters had expected a draw of 1 million barrels.

"The report is in my view bearish, due to large builds in refined products," Giovanni Staunovo, an analyst with UBS.