NYMEX-Oil falls further on big build in U.S. stocks

TOKYO – U.S. crude futures extended declines on Wednesday after Saudi Arabia ended a military campaign in Yemen, while industry data showed that a larger-than-expected build in U.S. oil inventories.

FUNDAMENTALS

* NYMEX crude for new June delivery was down 20 cents at US$56.41 a barrel by 2318 GMT. The contract for May delivery expired on Tuesday, settling down US$1.12 at US$55.26.

* London Brent crude for June delivery was untraded yet, after settling down US$1.37 at US$62.08.

* U.S. crude inventories rose by 5.5 million barrels last week, American Petroleum Institute data showed after Tuesday’s settlement, which compared with analysts’ projection for 2.9 million barrel build.

* Gasoline stocks showed a surprise build of 1.1 million barrels, while distillate stockpiles rose by a more-than-expected 1.7 million barrels, the data showed. Official data from the Energy Information Administration is due at 1430 GMT.

* Saudi Arabia announced on Tuesday it was ending a month-long campaign of air strikes against Houthi rebels who seized large areas of Yemen and said it would back a political solution to bring peace to its war-ravaged neighbour.

* Iran, which has supported the fellow Shi’ite Houthis, welcomed the ceasefire, which followed months of factional fighting between the militant group and forces loyal to the government, which was driven out of the capital Sanaa.

U.S. stocks were a mixed bag on Tuesday, with the Dow ending lower after a handful of uninspiring earnings reports while the Nasdaq closed near a record high following a proposed biotech merger.

* The dollar was mixed against major currencies on Tuesday, with the euro pivoting to modest gains against the greenback after euro zone finance ministers moved away from fixing a deadline for Greece to come up with fiscal reforms.