Crude oil prices dropped more than 1% Wednesday in a volatile session led by uncertainty and conflicting statements from oil ministers a day ahead of OPEC's meeting in Vienna, Kallanish Energy reports.
US crude inventories fell by 3.4 million barrels last week to 453.7 million, exceeding market expectations, the Energy Information Administration (EIA) said in its weekly report Wednesday.
Analysts on average forecast a decrease in oil reserves by 3 million barrels, as well as an increase in distillate stocks by only 160,000 barrels.
That line, operated by TransCanada Corp, was reopened on Tuesday. EIA data showed distillate stockpiles, which include diesel and heating oil, jumped by 2.7 million barrels, versus expectations for a 230,000-barrel increase.
Brent futures had fallen to US$63,67 a barrel by 06h28 GMT, down 17 cents, or 0,3%, from their previous close.
Gasoline futures ended near the day's lows following a bigger-than-expected rise in USA supplies of the fuel.
The oil for delivery in February traded lower by Rs 2.30, or 0.39 per cent, to Rs 586 per 10 kg in 221 lots.
Oil prices have rallied by 40 percent since the middle of the year, supported by a deal between the Organization of the Petroleum Exporting Countries (OPEC) and other major exporters, such as Russian Federation, to reduce crude oil production by 1.8 million barrels per day (bpd).
That had been expected, but there was some concern headed into OPEC's decision, expected Thursday, that the agreement might not be extended that long. Visit MarketWatch.com for more information on this news.
Gasoline stocks rose 3.6 million barrels, compared with forecasts for a 1.2 million-barrel gain.
January natural gas rose 1.6% to settle at $3.179 per million British thermal units, up sharply for a third-straight session on the back of weather-related expectations for higher demand.