Oil prices fell more than 4% on Wednesday, after the U.S. government reported a smaller-than-expected crude inventory draw for last week.
Information released by the U.S. Department of Energy showed crude inventories fell 2.5 million barrels in the week to July 8, less than analysts' expectations for a decrease of 3 million barrels
Crude futures had fallen earlier after the International Energy Agency (IEA) cautioned that a global supply glut was threatening market recovery.
The Energy Information Administration also said distillate stockpiles, which include diesel and heating oil, rose 4.1 million barrels - the largest build since the week ended Jan. 8 and much more than expectations for a 256,000-barrel increase. Gasoline stocks rose unexpectedly by 1.2 million barrels, compared with forecasts for a 432,000-barrel drop.
U.S crude oil futures fell $1.95 to $44.85 U.S. a barrel, a 4.2% loss.
The IEA, which advises industrialized nations on energy policies, said crude stockpiles kept rising last month, pushing floating storage to the highest level in seven years.
