The energy commodity lost value as a consequence of the news released by the U.S. Department of Energy on Wednesday. Inventories gained 2.84 million barrels to 375.9 million, significantly higher than a Bloomberg poll of 11 analysts whose median projections indicated gains would be about 2.5 million barrels.
The energy commodity also was pulled down in response to fewer jobs being created in April as compared to projections. Last month saw an increase of 119,000 jobs after 201,000 were added in March, ADP Employer Services stated. A Bloomberg poll indicated 170,000 new jobs would be added to the globe's largest economic system during the month.
"The ADP numbers took the wind out of the sails of the market," analyst and broker Gene McGillian with Tradition Energy in Connecticut told the news source. "The market needs a steady drumbeat of positive economic news to move higher."
At 12:28 p.m. on Wednesday, crude oil futures slipped 1.22 percent, a $1.46 drop to $118.20 per barrel.
Also impacting the price of the energy commodity is increasing unemployment figures for nations using the shared currency of the European Union, Bloomberg reports. Joblessness is driving toward its top level in nearly 15 years, indicating economic hiccups in the debt-hobbled region.
Manufacturing also shrank for a ninth-straight month in the euro zone, augmenting indications of an economy that is struggling.
"Concerns about Europe continue to weigh on risk," states an email to Bloomberg authored by analyst Michael Hewson with CMC Market. "There's still a lot of uncertainty ahead of this weekend's political events in France, Greece and Italy. Economic data continue to disappoint in Europe."
Losses to the energy commodity also were impacted by U.S. factory orders slipping the most in three years, which reduces demand for oil, according to Reuters.
The Associated Press reports the inventory increase was 0.8 percent and represents gains of 2.5 percent as compared to figures from 12 months ago, according to the weekly report penned by the Energy Information Administration of the U.S. Department of Energy.
The key site of Cushing, Oklahoma reported notching an all-time high of crude oil inventories, which were well above earlier projections, Dow Jones Newswires reports.
The American Petroleum Institute, an industry group, also saw its inventory total projection trumped.
Analyst Carl Larry with Oil Outlooks and Opinions told Dow Jones Newswires that shipments of the energy commodity to the Southeast U.S. are not as high as he anticipated.
"Crude imports at the Gulf Coast are really low," the analyst told the news source. "I have to think a lot is being diverted to other countries."
He noted that the adjustment is likely due to nations exploring options other than that of oil-rich Iran, the Middle East nation attempting to operate under the duress of sanctions levied by western countries opposed to the nation's nuclear ambitions.
"The underlying message is we are still tight," Larry told the news source. "There is not a lot of room to wiggle around and go back down to under $100" per barrel.
He said the last time the price of crude oil futures dropped that low was February of last year.
Iran is scheduled to convene later this month in Baghdad with the United Nations Security Council to continue discussing its nuclear program after having convened last month with the international body in Istanbul.
Representatives projected to join the May 23 meeting come from the U.S., Britain, France, Gemany, Russia and China.