Oil prices fell on Wednesday on producers providing more proof of growing global oversupply and as investors awaited the word from a U.S. Federal Reserve meeting where interest rates are likely to be raised, affecting the U.S. dollar and thus pressuring commodities.
Brent was $1.25 at $37.20 U.S. On Tuesday, the contract closed up 53 cents at $38.45 U.S. a barrel, marking in its first gain in eight days.
Analysts are watching for any test of Brent's December 2008 low of $36.20 U.S., a break below that level taking the benchmark to levels not seen since 2004.
Tuesday's data from industry group the American Petroleum Institute showed a surprise increase of 2.3 million barrels in U.S. crude stockpiles last week.A poll of analysts had forecast a fall of 1.4 million barrels.
Inventory data from the U.S. Energy Information Administration showed a weekly gain of 4.8 million barrels.
