Oil prices dropped to $82 a barrel today following a surge in US crude inventories and a downgrade of credit ratings for Greece and Portugal.

For June delivery, US crude dropped 22¢ to $82.22 by 2.45am ET, while London Brent crude was also down by 22¢ at $85.56, reports Reuters.

Oil pared losses as the dollar reduced gains today after trading as low as $81.66 a barrel, down 78¢ from Tuesday.

Data from the American Petroleum Institute showed that crude inventories rose 5.3 million barrels in the week ending 23 April, while cushing stocks also gained by 401,000 barrels to 34.6 million barrels.