Investing.com - Oil prices plunged on Wednesday after data revealed U.S. inventories rose more than three times markets were expecting, stoking growing concerns that the global market is awash in crude.
In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in December traded down 1.50% at $81.25 a barrel during U.S. trading, up from a session low of $81.13 a barrel and off a high of $83.13 a barrel.
The December contract settled up 0.71% at $82.49 a barrel on Tuesday.
Support for the commodity was seen at $80.78 a barrel, Monday's low, and resistance at $83.26 a barrel, Tuesday's high.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 7.1 million barrels in the week ended Oct. 17, far outpacing expectations for a gain of 2.7 million barrels.
Total U.S. crude oil inventories stood at 377.7 million barrels as of last week.
The report also showed that total motor gasoline inventories decreased by 1.3 million barrels, compared to forecasts for a decline of 1.0 million barrels, while distillate stockpiles increased by 1.0 million barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent for December delivery dipped 4 cents, or 0.05%, to hit $86.18 a barrel.
A stronger dollar depressed oil prices as well, making the commodity less attractive asset on exchanges denominated in the U.S. currency.
The U.S. Labor Department reported earlier that consumer prices rose 0.1% in September, meeting estimates and following a 0.2% decline in August, which sent investors flocking to the greenback.
Core consumer prices, which exclude food and energy costs, rose 0.1% in September, disappointing expectations for a 0.2% gain. Core consumer prices were flat in August, though the overall report confirmed market expectations for the Federal Reserve to make monetary policy less accommodating going forward.
Separately, on the ICE Futures Exchange in London, Brent oil futures for December delivery were down 0.88% at US$85.47 a barrel, while the spread between Brent and U.S. crude contracts stood at $4.22.