Crude oil futures ended lower on Wednesday, extending their previous session’s losses, after data showed a jump in oil inventories in the US last week. Data released by the Energy Information Administration (EIA) showed oil inventories in the US rose by 2 million barrels last week to 418.7 million barrels, against expectations for a 1.3 million-barrel drop. Further, weakness also prevailed as traders worried about a fall in demand after the Federal Reserve hiked interest rate by three-quarters of a percentage point. The biggest hike by the US central bank since 1994 also sent dollar higher with the dollar index rising to its highest since 2002. A stronger greenback makes US dollar-priced oil more expensive for holders of other currencies, curtailing demand.
Benchmark crude oil futures for July delivery fell $2.21 or 1.8 percent to settle at $116.72 a barrel on the New York Mercantile Exchange. Brent crude for August delivery dropped $2.01 or 1.65 percent to settle at $119.16 a barrel (provisional) on London's Intercontinental Exchange.