NEW YORK (Reuters):Oil prices fell below US$68 a barrel yesterday after a United States (U.S.) Government report showed a strong rise in crude oil and gasolene stockpiles in the world's top energy consumer.
Benchmark Brent crude fell 49 cents to $67.62 a barrel, while U.S. crude dropped 73 cents to US$62.44 a barrel.
U.S. crude stocks rose one million barrels in the week to May 11, surpassing analyst expectations for a 100,000-barrel build, the U.S. Energy Information Administration said.
Gasolene stocks, thinned by extensive seasonal refinery maintenance and unplanned outages, rose 1.7 million barrels.
"Historically high gasoline (profit margins) are now enticing refineries to ramp up production heading into the driving season and, when coupled with higher gasoline imports, could be signalling larger builds to come," said Christopher Jarvis, senior analyst at Caprock Risk Management.
Protest ends
Earlier in the session, prices eased as Nigerian protesters ended their occupation of an oil hub in the world's eighth biggest exporter.
The sit-in by villagers had forced operator Royal Dutch Shell to cut production by 170,000 barrels per day. Militant attacks have shut nearly 900,000 barrels per day, or 30 percent of supply capacity, from Africa's biggest oil producer.
"We have left the place out of respect for our elders and chiefs. We will allow Shell to do its work," said Teddy Penedibebari, who led the protest, which began on May 10.
Unrest has surged in Nigeria since elections last month that were so marred by rigging and violence that international observers said they were not credible.
U.S. oil prices have recovered after falling to US$50 in mid-January on a combination of supply cuts by the Organisation of Petroleum Exporting Countries, problems in Nigeria and U.S. gasoline stocks at a 16-year low for the time of year.
Consumer nations have called on OPEC to increase production but the cartel says it sees no need to act. Its next scheduled meeting is in September.