Oil down more than 2 percent after big U.S. crude stock build

By Barani Krishnan

NEW YORK (Reuters) - Oil prices extended their losses on Wednesday, with U.S. crude futures falling more than 2 percent, after an unexpected large build in U.S. crude stockpiles renewed worries about oversupply in the market.

The U.S. Energy Information Administration (EIA) reported crude inventories rose 2.5 million barrels last week, versus analysts forecasts for a drawdown of 500,000 barrels.

U.S. West Texas Intermediate (WTI) futures were down $1.35, or 2.8 percent, at $46.75 a barrel by 10:47 a.m. EDT (1448 GMT).

Brent crude futures fell $1, or 2 percent, to $48.96.

"The report is bearish, especially relative to expectations, led by the rise in crude oil inventories that was due to refinery utilization declines and large rise in imports," said John Kilduff, partner at New York energy hedge fund Again Capital.

(Additional reporting by Karolin Schaps in LONDON and Mark Tay in SINGAPORE; Editing by Marguerita Choy and Chizu Nomiyama)