Oil prices fell by more than $1 a barrel this evening after a huge, unexpected jump in crude stockpiles in the US added to nerves caused by fading consumer confidence. US crude dropped $1.11 to $76.39, while Brent North Sea crude shed $1.01 to $75.12.
The US Department of Energy said crude oil inventories jumped by 7.3 million barrels last week in the US - the world's biggest energy consuming nation. A rise in inventories usually signals a drop in demand for energy. Analyst had expected a drop of 1.4 million barrels.
The data come on top of growing evidence of weak US consumer confidence which has sapped hopes for a strong economic recovery.
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Oil prices had tumbled in US trade on Tuesday after a closely-watched survey showed that American consumer confidence plunged to its worst level in five months in July due to concerns about unemployment amid an uncertain economic outlook.
