17.10.201910:50:00UTC+00Oil Prices Fall After Large Stock Build

Oil prices fell on Thursday after an industry report showed a sharp jump in U.S. inventories, adding to concerns over increasing supply.

The downside, however, remained limited after China said it hoped to reach a phased trade agreement in a protracted dispute with the United States.

Benchmark Brent crude slid 0.2 percent to $59.30 a barrel, while U.S. WTI crude oil futures were down half a percent at $53.11.

The American Petroleum Institute's weekly report showed late Wednesday that U.S. crude inventories soared by 10.5 million barrels in the week to Oct. 11.

Analysts had estimated U.S. crude inventories to rise by around 2.8 million barrels. The report was released a day later than usual because of Monday's Columbus Day holiday.

Inventory data from the Energy Information Administration will be released later today.

Meanwhile, China's Commerce Ministry said today it is hoping to reach a phased agreement with the United States over trade as early as possible, and make progress on cancelling tariffs on each others' goods.

A phased agreement would help restore market confidence and reduce uncertainty, the ministry's spokesman Gao Feng told reporters.