NEW YORK (Reuters) - Oil prices fell below $87 on Wednesday, extending this month's losses to more than 5 percent, after a government report showed a surprisingly big build in U.S. petroleum stockpiles.
"The U.S. economy just attracts more bad news and demonstrates its fragility," said Robert Laughlin of MF Global. "For oil, demand will slip and prices should come under renewed pressure in the short term."
A report from the U.S. Energy Information Administration on Wednesday showed commercial crude stockpiles rose 7 million barrels last week against analyst expectations for a 2.6 million barrel build.
"These numbers are all bearish," said Tim Evans, analyst at Citigroup Futures Research. "Inventories were up across the board, implied demand looked terrible."
The Organization of the Petroleum Exporting Countries could keep output at current levels when its ministers meet next month if there is no change in the market, Secretary-General Abdullah al-Badri said on Tuesday.
(Additional reporting by Randy Fabi in London, Fayen Wong in Sydney; editing by Matthew Lewis)
