Crude oil prices fell by as much as three per cent loosening inventory levels on Wednesday amid loosening Inventory and a stronger greenback.
WTI crude futures eased to about 2.9 per cent to $81.6 a barrel, snapping a 3-day rally.
Brent crude futures lost about 2.09 per cent to trade around $83 per barrel during Wednesday’s session, pressured by a stronger greenback and rising American crude inventory levels.
EIA data showed domestic crude stockpiles added one million barrels last week, the third straight week of increases, meaning inventory levels have now reached a 3-month high.
On the other hand, American Petroleum Institute data pointed to an unexpected drop in nationwide holdings, although there was a build-up at the key Cushing, Oklahoma storage hub.
Limiting some of the downside movement, the White House said it would not release stocks from the Strategic Petroleum Reserve after the EIA projected in its Short Term Energy Outlook that the global oil market will become oversupplied and prices will fall by early next year.
In contrast, API inventory change data pointed to a 2.5 million barrel decline in US crude stocks, although there was a build-up at the key Cushing, Oklahoma storage hub.
Losses were slightly offset by the White House announcement that the administration would not release stocks from the strategic petroleum reserve.