Oil falls after data indicated a jump in US crude stocks

Oil prices fell in early Asian trade on Wednesday, after falling more than $1 a barrel in the previous session, as industry data pointed to a much larger-than-expected build in US crude inventories.

Brent crude futures fell 20 cents to $85.38 a barrel by 0111 GMT, while US West Texas Intermediate crude futures fell 19 cents to $78.87.

US crude inventories rose by about 10.5 million barrels in the week ending February 10, according to market sources, citing figures from the American Petroleum Institute on Tuesday.

This is a much larger increase than the 1.2 million barrels expected by nine analysts polled by Reuters, which likely indicates a decline in fuel demand.

Gasoline stocks rose by about 846,000 barrels, while distillate stocks rose by about 1.7 million barrels, according to the sources, who asked not to be named.

Official government inventory estimates are due at 0330 GMT on Wednesday.