Crude oil futures ended deeply in red on Wednesday, extedning their previous session’s losses, following a surprising rise in US crude stocks. Data released by Energy Information Administration (EIA) showed crude inventories in the US rose by 2.421 million barrels in the week ended April 1. The American Petroleum Institute (API) estimated on Tuesday a surprise U.S crude oil inventory build of 1.08 million barrels for the week ended April 1. Besides, oil prices also fell after news that large consuming nations would also release oil from reserves in conjunction with the United States to counter supply worries. Member states of the International Energy Agency (IEA) will release 120 million barrels from strategic reserves, including 60 million from the United States. That US 60 million commitment is part of Washington's plans to release a million barrels a day for the next six months for a rough total of 180 million barrels.
Benchmark crude oil futures for May delivery fell $5.73 or 5.6 percent to settle at $96.23 a barrel on the New York Mercantile Exchange. Brent crude for June delivery dropped $4.70 or 4.5 percent to settle at $101.94 a barrel on London's Intercontinental Exchange.