Oil Eased On Increased US Stockpiles

Oil prices declined Wednesday amid increased U.S. crude stockpiles and a continued drop in fuel demand.

Light, sweet crude for September delivery dipped 59 cents to settle at 118.58 U.S. dollars a barrel on the New York Mercantile Exchange. Futures fell as low as 117.11 dollars a barrel, the lowest trading price since early May, a 20 percent down from the record of 147.27 dollars a barrel reached on July 11.

Meanwhile, EIA data showed that U.S. fuel demand averaged 21.7 million barrels a day during the four weeks ended August 1, 2.6 percent down from a year earlier.

In London, Brent crude for September delivery fell 70 cents to settle at 117 dollars a barrel on the ICE Futures Exchange.