UPDATE 7-Oil slides below $41 as U.S. inventory rise revives glut worries

* EIA reports U.S. crude stocks, gasoline, distillates
* Brent hit three-month high, after OPEC+ extended cuts
* Prices weighed down as Gulf states end extra supply curbs

(New throughout, updates prices, market activity and comments;
new byline, changes dateline, previous LONDON)
By Laura Sanicola
NEW YORK, June 10 (Reuters) - Oil fell more than 2% to below
$41 a barrel on Wednesday after U.S. data showed crude
inventories rose to a record high, reviving worries of a
persistent glut due to weak demand during the lingering
coronavirus crisis.
Crude stocks rose by 5.7 million barrels in the week to June
5 to 538.1 million barrels, according to a report from the U.S.
Energy Information Administration . EIA/S
The build exceeded analysts' expectations but was smaller
than the build of 8.4 million barrels reported on Tuesday by the
American Petroleum Institute, an industry group. API/S
"As with the broader economy we are seeing a rebound but not
one that puts us where we were a year ago," said Matt Smith,
director of commodity research at Clipper Data.
Brent crude LCOc1 fell 82 cents, or 2%, to $40.36 a barrel
at 10:55 EST (1455 GMT). U.S. West Texas Intermediate (WTI)
CLc1 dropped 96 cents, or 2.5%, to $37.98.
Both benchmarks had hit three-month highs on Monday. Brent
has more than doubled since falling to a 21-year low below $16
in April. But some analysts think prices have risen too far with
the pandemic still cutting demand. "The macro factor that has supported the energy complex for
more than a month could subside significantly as the strong
advance in the equities is beginning to appear overcooked," Jim
Ritterbusch, president of Ritterbusch and Associates in Galena,
Illinois, said in a report.

Prices have been supported as the Organization of the
Petroleum Exporting Countries (OPEC), Russia and others, a group
known as OPEC+, slashed oil supplies by 9.7 million barrels per
day (bpd), about 10% of pre-pandemic demand.
An easing of government lockdowns has revived fuel demand by
boosting travel and economic activity. OPEC+ agreed on Saturday
to extend the record supply cut for another month until the end
of July.
While this helped prices, the market came under pressure
after Saudi Arabia, Kuwait and the United Arab Emirates decided
not to extend their extra voluntary supply reductions.


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GRAPHIC: Weekly changes in petroleum stocks in the U.S. https://tmsnrt.rs/3fMVOzX
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