WTI Oil drops to 3-week lows on the bearish API report

WTI oil dropped to three-week low of $51.27/barrel in Asia after the American Petroleum Institute (API) data released overnight reported second biggest crude build in US history. 

Oil inventories rose by a whopping 14.227 million barrels. Analysts were expecting a buildup of 2.38 million barrels. The Baker Hughes report released on Friday showed oil rigs in the US are rising at a rate last seen before mid-2014. 

The resulting sell-off in the oil prices indicates that the markets have priced-in the good news - OPEC & non-OPEC production cut. The markets now are more worried about the rising US supplies. 

The WTI front month contract was last seen trading around $51.52/barrel, down 65 cents or 1.25% on the day. Brent was trading 50 cents or 0.91% at $54.55/barrel.