Oil drops for second session on unexpected rise in US inventories

SINGAPORE (Reuters) – Oil prices dropped for a second session Thursday, under pressure from an unexpected rise in U.S. crude stocks that raised concerns over demand after prices rallied to multi-year highs.

U.S. crude slid 0.43%, or 33 cents, to $77.10 a barrel after the market climbed on Wednesday to $79.78, the highest since November 2014. Brent crude 2 cents, to $81.06 a barrel.

“Commercial stockpiles of crude rose … last week, according to EIA data,” ANZ said in a note. “Stockpiles of gasoline also surged raising concerns of weaker demand.”

U.S. crude inventories rose by 2.3 million barrels last week, the U.S. Energy Information Administraion (EIA) said, against expectations for a modest dip of 418,000 barrels. Gasoline inventories also rose, while distillate inventories were down slightly.