The market appeared to be taking the stockpile surge in stride because the headline increase was driven by a big jump in stocks in the U.S. Gulf Coast, one of five regions tracked by EIA.
Brent futures fell five cents to $69.32 US mid-morning Wednesday.
U.S. West Texas Intermediate crude settled at $62.46 a barrel, falling 12 cents after briefly hitting $62.99, the highest since November 7.
West Texas Intermediate for May delivery climbed 75 cents to $62.34 a barrel at 12:22 p.m. on the New York Mercantile Exchange, after earlier rising to as high as $62.50 a barrel.The WTI prompt spread traded at a discount of 5 cents, signaling a narrowing contango, a market structure where contracts in the near term are cheaper than those further out.
"The American Petroleum Institute reported a build of 3 mln barrels in USA commercial crude inventories for the week ended Mar 29, but that failed to dampen the bullish turn in the market's mood", Vandana Hari of Singapore-based consultancy Vanda Insights said in a note.
Distillate inventories decreased by 1.9 million barrels, compared to an expected a draw of 506,000 barrels for the week.
The $70 level "could prove to be the real litmus test for this current rally", he added.
Oil prices ticked higher on Thursday, with Brent hovering near the $70 mark despite weekly US oil data showed a surprise build in crude inventories and record production.
US crude production climbed 100,000 barrels per day to a record 12.2 million bpd, after hovering around 12 million to 12.1 million bpd since mid-February, according to preliminary EIA data.
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Sanders also said Mexico must ramp up its efforts to curb illegal immigration into the U.S. Wait times at Brownsville, Texas, were 180 minutes Monday, double the wait past year .
Oil inched toward the $70-a-barrel mark in London and then stumbled Wednesday, after a report showed US crude supplies rising by the most since January and production reaching a record.
Supply from OPEC countries hit a four-year low in March.
But the gains were moderated during the session, with USA crude briefly turning negative.
Meanwhile, WTI is now trading at $62.84 per barrel, having hit a four-month high of $62.89 soon before press time.
Oil production from Russian Federation fell to 11.3 million bpd last month, but missed the country's target under the supply deal.
But despite also being under USA sanctions, Venezuela's state-run energy company, PDVSA, kept oil exports near 1 million bpd in March, PDVSA documents and Refinitiv Eikon data showed.
USA crude oil production as estimated by the Energy Information Administration showed that production for the week ending March 22-the latest information available-stayed flat at an average of 12.1 million bpd-the all-time high for the United States.
"The supply cuts have been there for a while but Venezuela is not improving", said Olivier Jakob, analyst at Petromatrix.
Tight global supply is pushing prices higher.