The U.S. Energy Information Administration data showed a 3.9
million barrel rise in crude oil stocks last week....
Gasoline and distillate stocks also rose unexpectedly.

"It's pretty ugly," said Tom Bentz, senior commodity
analyst, of BNP Paribas Commodity Futures. "Inventories keep
building and we have too much of everything."

Demand is weak because of the world economic recession.
The IMF predicted in its latest World Economic Outlook that
the global economy will shrink by 1.3 percent in 2009. In
January, the organisation had forecast global growth of 0.5
percent this year.

HIGH STOCKS
Despite optimism about China, oil demand is falling,
illustrated by the latest import data from Japan and South
Korea.

Japan, the world`s third biggest oil consumer, reported the lowest imports numbers in 20 years. South Korea, the fifth-largest crude oil buyer, reported 15% drop in oil imports.

"Arguably the biggest uncertainty in the oil market at the
moment is the economy," Lawrence Eagles, oil analyst at JP
Morgan said in a research note.

The Organization of the Petroleum Exporting Countries is
concerned about the oversupply, Libya's top oil official said.
"We are worried about the overhang," Shokri Ghanem, chairman of
Libya's National Oil Corp., told Reuters.

Independent oil tanker owner Frontline has estimated oil
companies are storing close to 100 million barrels of crude oil
at sea -- the highest in recent times.