Oil prices drop $3.51 as U.S. crude supplies post a second straight weekly climb

Oil futures dropped Wednesday, with U.S. prices posting their biggest single-session loss in nearly three weeks, after government data revealed a hefty weekly increase in domestic crude stockpiles, defying expectations for a decline.

“Despite a chunky drop in imports, refinery runs below year-ago levels have encouraged a second consecutive build to crude inventories—now up over 37 million barrels, or 8.5% percent, in the last nine weeks,” said Matt Smith, director of commodity research at ClipperData.

Domestic crude production has also “ticked higher again, while another U.S. Strategic Petroleum Reserve release, “this time 1.2 million barrels, has helped boost the rise in inventories,” he added.

West Texas Intermediate crude for July delivery CLN19, -5.62% fell $1.71, or 2.7%, to settle at $61.42 a barrel on the New York Mercantile Exchange, for largest single session dollar and percentage drop since May 2, according to FactSet data.