Oil edges lower as U.S. stockpiles grow more than expected

* U.S. crude stocks rise 1.7 mln barrels last week - API
* U.S. gasoline and distillate inventories fall - API
* Worries over rising new cases of COVID-19 add to pressure

By Yuka Obayashi
TOKYO, June 24 (Reuters) - Oil futures edged lower on
Wednesday, extending losses from the previous day, after U.S.
crude stockpiles grew more than expected, adding to worries
about oversupply, although a fall in gasoline stocks kept the
decline in check.
Brent crude LCOc1 was down 2 cents at $42.61 a barrel by
0045 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1
futures fell 4 cents, or 0.1%, to $40.33 a barrel.
U.S. crude inventories rose by a much bigger than expected
1.7 million barrels last week, according to industry group the
American Petroleum Institute (API), well ahead of analysts'
expectations for a 300,000-barrel build. API/S
However, U.S. gasoline and distillate inventories fell, the
data showed, feeding optimism that fuel consumption is picking
up as some economies ease lockdowns imposed to contain the
coronavirus pandemic.
U.S. government data will be released on Wednesday. EIA/S
ENERGYUSA ENERGYAPI
Global oil consumption has started to recover as economies
emerge from lockdown, while the Organization of the Petroleum
Exporting Countries (OPEC) and allied producers have slashed
output and U.S. shale producers have shut in wells.
On Tuesday, both Brent and WTI contracts traded at their
highest levels since prices collapsed in early March.
Still, the market remains concerned about a rising number of
coronavirus cases in the United States and elsewhere, said
Kazuhiko Saito, chief analyst at Fujitomi Co.
New cases of COVID-19 rose 25% in the United States in the
week ended June 21 compared to the previous seven days, a
Reuters analysis found. China, the world's top crude importer, is also expected to
slow crude imports in the third quarter, after record purchases
in recent months, as higher oil prices hurt demand and refiners
worry about a second virus outbreak.