Oil futures fell further on Wednesday immediately following weekly data that showed a surge in crude supplies in the United States that proved much more than the market expected.
There are also media reports that the U.S. government plans to release up to five million barrels of crude from the Strategic Petroleum Reserve as part of a test sale.
The U.S. Energy Information Administration said crude stockpiles jumped 6.2 million barrels for the week ended March 7. Analysts polled by Platts were looking for a climb of 2.3 million barrels.
Gasoline supplies fell by 5.2 million barrels, while distillate stockpiles declined by 500,000 barrels, according to the EIA. Gasoline stockpiles were expected to fall by 1.8 million barrels, while distillates, which including heating, were seen down 900,000 barrels, according to the Platts poll.
April crude traded as low as $98.22 U.S. a barrel right after the data, then pared losses to $98.56 U.S., down $1.47, or 1.5%, from Tuesday's settlement on the New York Mercantile Exchange. Before the report, prices traded at $98.58 U.S.
