Investing.com - Crude prices dropped on Wednesday after official U.S. data revealed that the country's supplies shot up way more than expected last week.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD101.39 a barrel during U.S. trading, down 2.03%.
The commodity hit a session low of USD101.21 and a high of USD103.75. The November contract settled up 0.45% at USD103.49 a barrel on Tuesday.
Oil futures were likely to find support at USD101.06 a barrel, the low from Sept. 30, and resistance at USD104.06 a barrel, Tuesday's high.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 6.8 million barrels in the week ended Oct. 4, well above expectations for an increase of 1.5 million barrels.
Total U.S. crude oil inventories stood at 370.5 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 149,000 barrels, below expectations for a gain of 1.3 million barrels.
The numbers sent prices falling on fears supplies are outstripping demand.
Elsewhere, investors in energy markets still remained cautious as a U.S. government shutdown continued into a second week with few signs of a breakthrough ahead of an Oct. 17 deadline to raise the limit on federal debt borrowing and avoid a default sometime afterwards.
On Tuesday, President Obama reiterated that he will only enter negotiations with congressional Republicans after the government is reopened and the U.S. debt ceiling is raised without conditions.
A default could slow growth and crimp demand for fuel and energy.
Meanwhile on the ICE Futures Exchange, Brent oil futures for November delivery were down 1.42% at USD108.60 a barrel, up USD7.21 from its U.S. counterpart.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD101.39 a barrel during U.S. trading, down 2.03%.
The commodity hit a session low of USD101.21 and a high of USD103.75. The November contract settled up 0.45% at USD103.49 a barrel on Tuesday.
Oil futures were likely to find support at USD101.06 a barrel, the low from Sept. 30, and resistance at USD104.06 a barrel, Tuesday's high.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 6.8 million barrels in the week ended Oct. 4, well above expectations for an increase of 1.5 million barrels.
Total U.S. crude oil inventories stood at 370.5 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 149,000 barrels, below expectations for a gain of 1.3 million barrels.
The numbers sent prices falling on fears supplies are outstripping demand.
Elsewhere, investors in energy markets still remained cautious as a U.S. government shutdown continued into a second week with few signs of a breakthrough ahead of an Oct. 17 deadline to raise the limit on federal debt borrowing and avoid a default sometime afterwards.
On Tuesday, President Obama reiterated that he will only enter negotiations with congressional Republicans after the government is reopened and the U.S. debt ceiling is raised without conditions.
A default could slow growth and crimp demand for fuel and energy.
Meanwhile on the ICE Futures Exchange, Brent oil futures for November delivery were down 1.42% at USD108.60 a barrel, up USD7.21 from its U.S. counterpart.