Oil prices fell on Wednesday as oversupply worries returned after Kuwaiti oil workers ended a three-day strike and U.S. industry data indicated a larger-than-expected build in crude inventories last week.

Six supertankers have lined up at Kuwait's crude export terminal to load oil, and the country has raised its output to 1.6 million barrels per day (bpd) from 1.1 million on Sunday.

The U.S. government's Energy Information Administration will issue official inventory numbers at 10:30 a.m. EDT EIA/S], following a much stronger-than-expected storage rise reported on Tuesday by American Petroleum Institute.[API/S]

The impending expiry of the front-month May CK6 contract in U.S. crude's West Texas Intermediate (WTI) futures also weighed, as it traded at a discount of around $1.50 to the June contract CM6 that would become the market's benchmark from Thursday.

"An expiration of more than $1.50 a barrel in the May-June spread today would send off some additional bearish WTI signals," said Jim Ritterbusch of Chicago-based energy markets consultancy Ritterbusch & Associates.

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Reuters