Oil is falling after an increase in US inventories reinforced demand concerns

Oil prices fell on Wednesday, giving up gains from the previous session, after sector data revealed an unexpected increase in US crude and fuel inventories, which raised concerns about fuel demand.

West Texas Intermediate crude futures fell 59 cents, or 0.8 percent, to $74.53 a barrel by 0134 GMT, while Brent crude futures fell 62 cents, or 0.8 percent, to $79.48 a barrel.

Sources said, citing data from the American Petroleum Institute, that US crude stocks jumped by 14.9 million barrels in the week ending January 6. At the same time, distillate stocks, which include heating oil and jet fuel, rose by about 1.1 million barrels.

Analysts polled by Reuters expected crude stocks to decline by 2.2 million barrels and distillate stocks to drop by 500,000 barrels.