Crude oil futures ended deeply in red on Wednesday after data showed a sharp jump in U.S. crude inventories in the week ended January 31st. Data from the Energy Information Administration (EIA) said crude oil inventories in the U.S. spiked by 8.7 million barrels last week, after surging by 3.5 million barrels in the previous week. Street had expected crude oil inventories to jump by 3.2 million barrels. The EIA said at 423.8 million barrels, U.S. crude oil inventories remain about 5% below the five-year average for this time of year. It said gasoline inventories also increased by 2.2 million barrels last week and are slightly above the five-year average for this time of year. Besides, concerns about the outlook for oil demand due to the U.S.-China spat weighed as well on prices.
Benchmark crude oil futures for March fell $1.67 or 2.29 percent to settle at $71.03 a barrel on the New York Mercantile Exchange. Brent crude for April delivery dropped $1.59 or 2.08 percent to settle at $74.61 a barrel on London's Intercontinental Exchange.