(MENAFN- AFP) Oil prices fell Wednesday as the US government reported a surprise jump in the country's crude stockpiles, adding to market concerns about a global supply glut.
US benchmark West Texas Intermediate for delivery in September dropped 81 cents to $50.05 a barrel.
Brent North crude for September slipped 48 cents to stand at $56.56 a barrel in late London deals.
"Crude prices remain under pressure as the supply overhang continues to persist," said Bernard Aw, market strategist at IG Markets.
The US Department of Energy on Wednesday said US commercial crude stockpiles had risen by 2.5 million barrels last week, confounding analyst expectations for a gain of 2.2 million according to Bloomberg.
Oil prices have tumbled from more than $100 a barrel in June last year as strong production from the United States and the Organization of the Petroleum Exporting Countries led to supply outpacing demand.
Concerns over the return of Iranian oil to the market following a deal with major powers on its suspected nuclear ambitions have also depressed prices.
The deal -- which aims to prevent Iran from building a nuclear weapon -- allows for the lifting of crippling economic sanctions on the country, enabling it to ramp up shipments of oil.
A strong greenback, boosted by the prospect of higher US interest rates, has also dented demand for dollar-priced oil and helped push prices downwards.
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