Investing.com - West Texas Intermediate oil futures extended overnight losses in North America trade on Wednesday, after data showed that oil supplies in the U.S. fell less than expected last week.
Crude oil for August delivery on the New York Mercantile Exchange sank $1.17, or 2.5%, to trade at $45.63 a barrel by 14:35GMT, or 10:35AM ET. Prices were at around $46.24 prior to the release of the inventory data.
The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 2.5 million barrels in the week ended July 8. Market analysts' expected a crude-stock decline of 3.0 million barrels, while the American Petroleum Institute late Tuesday reported a supply gain of 2.2 million barrels.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, dropped by 232,000 barrels last week, the EIA said. Total U.S. crude oil inventories stood at 521.8 million barrels as of last week.
The report also showed that gasoline inventories increased by 1.2 million barrels, disappointing expectations for a decline of 432,000 barrels, while distillate stockpiles jumped by 4.1 million barrels.
A day earlier, New York-traded oil futures soared $2.04, or 4.56%, amid a broad improvement in risk sentiment.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery slumped $1.30, or 2.68%, to $47.17, following bearish comments from the International Energy Agency.
The global glut in oil is refusing to ease and acts as a major dampener on crude prices despite robust demand growth and steep declines in non-OPEC production, the IEA said on Wednesday.
"Although market balance is upon us, the existence of very high oil stocks is a threat to the recent stability of oil prices," the Paris-based organization said in its monthly oil market report released earlier.
On Tuesday, London-traded Brent futures surged $2.22, or 4.8%, its biggest daily gain since April 8, after the Organization of the Petroleum Exporting Countries forecast higher demand for its crude next year as the global surplus fades.