Oil Prices Drop Filthily after Rise in US Inventories

Oil prices fell on Wednesday after U.S. crude stocks rose more than expected in the most recent week, even as gasoline inventories hit a four-year low in the world's largest oil consumer.

Brent crude futures were down USD 2.43, or 2.9%, at USD 82.29 a barrel U.S. West Texas Intermediate (WTI) crude futures tumbled USD 2.75, or 3.3%, to USD 81.16 a barrel.

Crude stocks rose more by 3.3 million barrels in the most recent week, more than expected, but gasoline stocks fell to their lowest level since November 2017. U.S. oil market supply has tightened, with stocks at the Cushing, Oklahoma storage hub at their lowest in three years.

Traders also expect the U.S. Federal Reserve will act to curb inflation, which could sap some speculative buying in risk assets including oil.

"Markets already have been under pressure," said Phil Flynn, an analyst at Price Futures Group in Chicago. "We're down because of profit-taking from the Fed meeting today."