Oil Down 4 Percent; U.S. Stockpile Build Threatens Market Recovery

Source: Reuters

Oil prices tumbled 4 percent on Wednesday, with U.S crude settling below the key $40 per barrel mark after a sixth straight week of record highs in stockpiles that traders warned could cut short the market's two-month long rally.

Weak equity markets also sapped the strength in oil while a strong dollar weighed on demand for crude from users of the euro and other currencies. [.N] [FRX/]

The U.S. government's Energy Information Administration (EIA) said crude stockpiles rose 9.4 million barrels last week - three times the 3.1 million barrels build forecast by analysts in a Reuters poll. [EIA/S]

"The data will do little to help oil bulls, given the monster build for crude inventories already at record high levels prior to this," said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland.

Read more: http://www.reuters.com/article/us-global-oil-idUSKCN0WP04J