West TX Oil Drops Below $59 Despite U.S. Stockpile Drop

Oil fell about 3 percent Wednesday as traders and investors ignored a fifth straight weekly decline in U.S. crude stockpiles to focus instead on a big build in distillates, including diesel, as the peak season for U.S. road travel got under way.

U.S. crude futures closed down $1.62, or 2.64 percent, at $59.64 a barrel. Front-month Brent futures fell $1.61, or 2.4 percent, to $63.90 a barrel.

Glum sentiment ahead of Friday’s meeting of the Organization of the Petroleum Exporting Countries also weighed on the market. OPEC, which pumps more than a third of the world’s oil, is expected to reject any calls for output cuts and it instead continue to produce about 2 million barrels per day above demand.