Oil prices fell on Wednesday despite a larger-than-expected decline in U.S. crude and gasoline inventories, as investors remained concerned about high global crude output and the nagging supply glut.
Brent crude futures fell $1.43 at $44.59 a barrel. U.S. crude futures fell $1.24 to $42.47, briefly falling 3 percent, a 10-month low.
The U.S. Energy Information Administration said crude inventories declined by 2.5 million barrels, exceeding expectations for a 2.1 million-barrel drop. This data supported prices only briefly.
“Updated inventory balances don’t represent a game changer,” said Anthony Headrick, energy market analyst at CHS Hedging LLC in Inver Grove Heights, Minnesota. “Particularly while lower 48 crude production rose 25,000 barrels per day.”
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