Inventories in the globe's largest user pushed to their top level in eight months, dragging down West Texas Intermediate crude oil futures after the energy commodity notched its top price in five weeks one day prior, according to Bloomberg.
Industry group the American Petroleum Institute said late on Tuesday that inventories increased by 3.74 million barrels last week to amount to 380.4 million, representing the largest climb since July of last year.
"If today's inventory numbers are anything like yesterday's API, you can kiss the recent highs goodbye," futures division director Bob Yawger with Mizuho Securities USA Inc. in New York told Bloomberg on Wednesday. "This is also a risk-off day in crude oil and equities because of issues that have nothing to do with oil fundamentals."
At 10:22 a.m. on Wednesday, West Texas Intermediate crude oil futures fell 0.55 percent, a 71-cent loss to $95.79 per barrel. Brent crude oil futures dropped 0.13 percent, a 30-cent loss to $109.17 per barrel.
UPI reports the Energy Information Administration, an arm of the U.S. Energy Department, is preparing to release data regarding inventories on Wednesday afternoon, which likely will impact the price of crude oil futures.
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