Crude oil prices drifted lower and closed at their lowest levels in about a week on Wednesday, after data showed a notable jump in crude inventories in the U.S.
Worries about energy demand outlook amid the ongoing U.S.-China trade dispute and slowing global economy too contributed to the drop in oil prices.
West Texas Intermediate Crude oil futures for December ended down $0.48, or about 0.9%, at 55.06 a barrel.
On Tuesday, WTI Crude oil futures for December ended down $0.27, or about 0.5%, at $55.54 a barrel.
According to the data released by the Energy Information Administration (EIA) Wednesday morning, crude stockpiles in the U.S. increased by 5.7 million barrels in the week ended October 25, more than twice the expected jump.
The EIA report also said gasoline inventories dropped by 3 million barrels in the week ended October 25. Distillates supply dropped by about 1 million barrels in the week, the data showed.
Late on Tuesday, the American Petroleum Institute (API) had released a report that said crude inventories fell by 708,000 barrels last week.
Meanwhile, hopes over a potential U.S.-China trade deal waned after reports suggested a phase one trade deal between the U.S. and China may not be signed by a summit in Chile next month.
The material has been provided by InstaForex Company – www.instaforex.com