Crude oil traded at $102.05 a barrel, down 1.90% on the back of an increase in inventories and yesterday's hawkish FOMC minutes.
A report released by the US Department of Energy showed that crude inventories climbed rose by 9.01 million barrels to 362.4 million in the seven days ended 30 March. This was the highest level since 17 June and exceeded forecasts for a 2.5 million barrel increase. Supplies at Cushing, Oklahoma, the delivery point for New York traded futures, increased by 729,000 barrels to 40.3 million.
On Tuesday the American Petroleum Institute (API) said supplies rose 7.85 million barrels to 359.3 million last week. The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.