Investing.com - West Texas Intermediate oil futures added to losses on Wednesday, 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 October on the New York Mercantile Exchange dropped $1.07, or 2.36%, to trade at $44.34 a barrel during U.S. morning hours. Prices were at around $45.21 prior to the release of the inventory data.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories rose by 4.7 million barrels in the week ended August 28.
Market analysts' expected a crude-stock rise of 32,000 barrels, while the American Petroleum Institute late Tuesday reported an increase of 7.6 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, decreased by 388,000 barrels last week, following a rise of 256,000 barrels in the preceding week.
Total U.S. crude oil inventories stood at 455.4 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 decreased by 0.3 million barrels, while distillate stockpiles rose by 0.1 million barrels.
A day earlier, Nymex oil prices plunged $3.79, or 7.7%, after data showed that China’s factory sector contracted at the fastest rate in three years, while manufacturing activity in the U.S. fell to a more than two-year low, fueling concerns over the health of the global economy.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery slumped 59 cents, or 1.2%, to trade at $48.97 a barrel. On Tuesday, Brent futures sank $4.59, or 8.48%, to end a 25% three-session short-covering rally, the biggest three-day surge since 1990.
Crude oil prices have been under heavy selling pressure in recent months amid concerns over a growing glut in world markets.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the OPEC last year not to cut production.