WASHINGTON (dpa-AFX) - Crude oil futures ended lower on Wednesday, even as data from the Energy Information Administration showed a much larger than expected drop in crude stockpiles in the U.S. last week.
Worries about the outlook for energy demand due to global economic slowdown dragged oil prices down from early highs and pushed them down into negative territory.
West Texas Intermediate Crude oil futures for September ended down $0.89, or about 1.6%, at $55.88 a barrel.
On Tuesday, WTI crude oil futures for September ended up $0.55, or about 1%, at $56.77 a barrel.
The U.S. Energy Information Administration said earlier in the day that crude inventories fell by 10.84 million barrels for the week to July 19, compared to forecast for a draw of 4 million barrels.
The EIA report also said that gasoline inventories decreased by 226,000 barrels last week, while distillate stockpiles rose by 613,00 barrels.
The American Petroleum Institute (API) reported late Tuesday that oil inventory in the U.S. fell by 11 million barrels in the week to July 19, compared to analyst expectations of a much smaller 4 million barrel draw.
Rising tensions in the Middle East, optimism about U.S.-China trade talks and API's data showing a significant drop in U.S. crude inventories lifted crude oil prices earlier in the day.
However, oil futures turned weak later on in the session, weighed down by the IMF's recent decision to lower its growth forecasts for the U.S. and the global economy for this year and next.
The International Monetary Fund on Tuesday cut its growth forecasts for the global economy for this year and next.
Gulf tensions continued to hurt sentiment after the American military said the U.S. may have brought down two Iranian drones in the Gulf last week, not one.
Iranian President Hassan Rouhani said today his country was open to holding talks on its nuclear program but would not surrender under the name of negotiation.
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