Investing.com - West Texas Intermediate oil futures were lower on Wednesday, erasing gains after data showed that oil supplies in the U.S. rose more than expected last week, underlining concerns over weak demand.
Crude oil for delivery in November on the New York Mercantile Exchange shed 32 cents, or 0.71%, to trade at $44.91 a barrel during U.S. morning hours. Prices were at around $45.42 prior to the release of the inventory data.
A day earlier, Nymex oil prices rallied 80 cents, or 1.8%, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 4.0 million barrels in the week ended September 25.
Market analysts' expected a crude-stock rise of 0.1 million barrels, while the American Petroleum Institute late Tuesday reported an increase of 4.6 million barrels.
Total U.S. crude oil inventories stood at 457.9 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.
The report also showed that gasoline inventories increased by 3.3 million barrels, disappointing expectations for a decline of 0.1 million barrels.
U.S. oil futures are on track for a 25% drop in the third quarter as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery inched up 2 cents, or 0.03%, to trade at $48.24 a barrel. On Tuesday, Brent futures jumped 89 cents, or 1.88%.
London-traded Brent prices are 25% lower since the end of June amid indications China's economy is losing momentum, fueling fears over sluggish demand.
Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.33 a barrel, compared to $3.00 by close of trade on Tuesday.