WASHINGTON (dpa-AFX) - Oil prices fell sharply on Wednesday, weighed down by data showing a larger than expected increase in U.S. crude inventories in the week ended February 7th. Fed Chair Jerome Powell's remarks that the central bank is not in a rush to lower rates, weighed as well on oil prices.
Traders were also worried that U.S.'s tariffs on steel and aluminum, and possible retaliation by China, EU and Canada, could curb economic growth and hurt energy demand.
West Texas Intermediate Crude oil futures settled lower by $1.95 or about 2.66% at $71.37 a barrel, falling after three successive days of gains.
Brent crude futures ended lower by $1.82 or about 2.36% at $75.18 a barrel.
Data from the Energy Information Administration (EIA) showed crude oil inventories jumped by 4.1 million barrels last week, after surging by 8.7 million barrels a week earlier. Economists had expected crude oil inventories to climb by 2.8 million barrels.
Nonetheless, crude oil inventories remain about 4% below the five-year average for this time of year, the EIA said.
The EIA data also showed distillate fuel inventories, which include heating oil and diesel, crept up by 0.1 million barrels last week but remain about 11% below the five-year average for this time of year.
Meanwhile, the EIA said gasoline inventories fell by 3.0 million barrels last week and are 1% below the five-year average for this time of year.
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