Investing.com - West Texas Intermediate oil futures fell to the lowest levels of the session on Wednesday, after data showed that oil supplies in the U.S. rose to the highest level on record, exacerbating fears over a glut in supplies.
On the New York Mercantile Exchange, crude oil for delivery in April slumped 66 cents, or 1.31%, to trade at $49.86 a barrel during U.S. morning hours. Prices were at around $50.54 a barrel prior to the release of the inventory data.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 10.3 million barrels in the week ended February 27, compared to expectations for an increase of 4.0 million barrels.
Total U.S. crude oil inventories stood at 444.4 million barrels as of last week, the most in at least 80 years.
The report also showed that total motor gasoline inventories increased by 46,000 barrels, compared to expectations for a drop of 1.9 million, while distillate stockpiles declined by 1.7 million barrels.
A day earlier, Nymex oil prices jumped 93 cents, or 1.88%, to settle at $50.52 a barrel after the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 2.9 million barrels in the week ended February 27, below forecasts for an increase of 4.0 million barrels.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for April delivery tumbled $1.41, or 2.3%, to trade at $59.62 a barrel.
On Tuesday, London-traded Brent prices rallied $1.48, or 2.49%, to end at $61.02 a barrel after Saudi Arabia raised the official selling price for its oil to buyers in the U.S. and Asia.
The sharp price movements continued the trend of volatile fluctuations, as futures have wavered dramatically over the last several weeks.
Daily oil prices have moved more than 2% in an up or down direction in 27 of the last 40 trading days.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $9.76 a barrel, compared to $10.50 by close of trade on Tuesday.
Oil prices have fallen sharply in recent months as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.