Brent slips after industry data shows U.S. stocks at new record high

LONDON (Reuters) - Brent (brent.167)prices fell on Wednesday on oversupply concerns as industry data indicated U.S. crude stocks had hit a new record high.

U.S. crude inventories rose by 10.5 million barrels to 450 million in the week to March 13, American Petroleum Institute data showed on Tuesday. [EIA/S]

Analysts had expected a 3.8-million-barrel increase.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 3 million barrels, API said.

Brent for May delivery was down 47 cents to $53.04 per barrel by 0956 GMT after ending the previous session up 7 cents at $53.51.

U.S. crude for April delivery fell $1.41 to $42.05 per barrel, its lowest price since 2009.

Official inventory data will be issued on Wednesday by the U.S. Energy Information Administration (EIA).

"Whether the API data is right or wrong it is still about market expectations or missed expectations," said Ben LeBrun, a market analyst at Sydney's OptionsXpress.

The expiry of the Brent contract on Monday and the West Texas Intermediate forward contract on March 20 "is adding a bit of fuel, adding to volatility in the market", LeBrun said.

Traders on Wednesday are also watching for the U.S. Federal Reserve's policy making committee to outline monetary policy objectives including regarding interest rates.

"If U.S. interest rate hikes would be pushed back, this would likely cause the dollar to weaken, however, only in the short run," said Singapore's Phillip Futures in a research note.

Global oversupply concerns have been spurred by factors including U.S. output levels, some recovery in Libya's production and the potential for a boost in Iran's exports should Western sanctions be lifted.

There could also be more downward pressure on prices as China pauses its build-up of strategic reserves and Asian refineries slow imports ahead of spring maintenance.

(Additional reporting by Keith Wallis and Jessica Jaganathan in Singapore; editing by Jason Neely)