Oil fell more than 3 percent on Wednesday, dragged down by an unexpected build in US crude stockpiles and a stronger dollar. US crude traded down $2.43 to settle at $66.12 a barrel, after falling as low as $64.95 during intraday activity. London Brent crude fell $2.29 to $65.88 a barrel. Crude oil inventories in the world's top consumer jumped by 2.9 million barrels last week as imports rose, according to data from the US Energy Information Administration, against analyst forecasts for a draw. Total US petroleum inventories rose by 15 million barrels during the week, the biggest gain since October. Meanwhile, the 16-nation euro dropped to $1.4134 from $1.4318 late Tuesday, while the British pound sank to $1.6276 from $1.6572. The dollar edged up to 95.85 Japanese yen from 95.66 yen. Federal Reserve Chairman Ben Bernanke warned that record-high budget deficits could endanger the economy's long-term health. The euro and pound had surged against the dollar in recent weeks as investors were optimistic about the economy, trading their positions in the traditional safe-haven currency for higher-yielding assets. Moreover, gold prices retreated Wednesday, falling 2 percent as the dollar rebounded against the euro and the British pound. Gold for August delivery subsequently dropped $18.80, or 1.9 percent, to $965.60 an ounce on the New York Mercantile Exchange. July silver sank 64.5 cents to $15.31 an ounce, while July copper futures fell 8.55 cents to $2.2120 a pound.
