Crude oil futures ended sharply lower on Wednesday after data showed an unexpected surge in US crude inventories in the week ended July 29th. Data released by US Energy Information Administration (EIA) showed crude stockpiles in the US rose by 4.5 million barrels last week versus expectations for a draw of 630,000 barrels. Further, the dollar's strength after hawkish comments from a few Fed officials also weighed on oil prices. Meanwhile, traders also noted the decision by the Organization of the Petroleum Exporting Countries and allies, collectively called OPEC+, on output level. OPEC+ said that it would produce an additional 100,000 barrels a day in September.
Benchmark crude oil futures for September delivery fell $3.76 or 4 percent to settle at $90.66 a barrel on the New York Mercantile Exchange. Brent crude for October delivery dropped $3.14 or 3.1 percent to settle at $97.40 a barrel on London's Intercontinental Exchange.