Crude prices traded sharply lower on Wednesday on larger-than-expected U.S. inventories.
The Energy Information Administration reported that crude inventories jumped by 4.7 million barrels for the week ended Feb. 6, surpassing the expectations of 3 million barrels by analysts.
Gasoline inventories had declined by 2.6 million barrels, surprising trader who expected stockpiles to grow by 900,000 barrels.
On Wednesday, the International Energy Agency lowered its estimate for global oil demand in 2009 by 570,000 barrels to 84.7 million barrels per day because of the worsening economic downturn.
Light, sweet crude for March delivery fell 1.99 U.S. dollars to settle at 35.94 dollars a barrel on the New York Mercantile Exchange.
In London, the March Brent contract fell 33 cents to settle at 44.28 dollars on the ICE Futures exchange.