US oil price falls as inventories rise

U.S. crude price dropped Wednesday as government report showed that U.S. crude stockpile rose more than expected last week.

U.S. crude supplies of the week ending April 17 increased 5.3 million barrels to 489 million, 91.3 million barrels more than a year earlier.

Inventories at Cushing, Oklahoma, the delivery point for the contract, gained 740,000 barrels to 62.2 million barrels.

Last week U.S. crude production decreased 18,000 barrels to 9. 366 million barrels a day.

Brent oil price gained after Saudi Arabia resumed air strikes on Huthi rebels in Yemen Wednesday.

Yemen borders top oil producer Saudi Arabia. The geopolitical concerns about Yemen overshadowed the negative effect of supply glut.

Light, sweet crude for June delivery lost 45 cents to settle at 56.16 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery moved up 65 cents to close at 62.73 dollars a barrel.