Oil skids as US inventories pile up, but demand hopes stem bigger drop

Oil prices dropped on Wednesday after US industry data showed a surprise build in crude inventories, but expectations for firmer demand next year kept losses in check.

Brent crude futures dropped 38 cents, or 0.57 per cent, to $65.72 a barrel by 0730 GMT on Wednesday. The international benchmark rose 1.2 per cent to $66.10 a barrel on Tuesday.

West Texas Intermediate (WTI) crude futures fell 46 cents, or 0.75 per cent, to $60.48 per barrel.