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Oil prices down while U.S. inventory grows

Oil markets fell on Wednesday after a report of growing U.S. fuel and oil inventories underline fears that the three-year glut in the market is far from over.

Brent crude futures were at $46.59 a barrel, down 6 cents, or 0.1%, from the last close. WTI crude futures fell 15 cents, or 0.3%, to $44.09 a barrel.

Oil had rebounded slightly last week after falling about 20% since mid-May, while a report by the American Petroleum Institute showed that the United States crude inventories rose by 851,000 barrels in the week to June 23 to 509,5 million, compared with analysts' forecasts for a decline of 2.6 million barrels.

Gasoline inventories rose by 1.4 million barrels, while the U.S. summer driving season began a few weeks ago.

"We believe that the sale in oil is exceeded and Brent is ready for a recovery"- said BMI Research.

Ian Taylor, head of the world's largest independent oil trader Vitol Group, said that Brent crude prices will remain between $40-$55 per barrel over the next few quarters, while U.S. production slows rebalancing of the market. Some analysts believe that oil prices will probably reach the bottom and will start to grow again.

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