Oil falls as US inventories rise to highest in five months

Oil fell for a third day after government data showed US inventories rose to the highest level in more than five months and on expectations that the Federal Reserve will not take new action to bolster the economy.

Prices fell as much as 1.2% to $105.29 after the Energy Department said supplies rose 4.16 million barrels to 344.9m last week.

US Fed chairman Ben S Bernanke, in prepared testimony for Congress, gave no signal that the central bank is considering more measures to spur the economy and called the inflation outlook is “subdued.”