Global oil prices dropped to a 3 month low on Wednesday, after the largest weekly buildup of U.S. crude stocks in a year added to concerns that a budget impasse in Washington would curb demand in the world's biggest oil consumer.
Data from the U.S. Energy Information Administration (EIA) showed U.S. crude inventories shot up nearly 7 million barrels last week, their largest weekly gain since September 2012, and well above forecasts by analysts of a 1.5 million barrel increase.
The news sparked a selloff, pushing losses in both Brent and U.S. crude beyond $2 a barrel. Oil prices had edged lower earlier in the day after U.S. lawmakers made little progress toward ending the budget stalemate, though declines were limited by concerns that further unrest in Egypt and Libya could disrupt Middle East supply.
U.S. oil settled down $1.88 at $101.61 per barrel, its weakest level since July 3.
Brent oil tumbled by more than $1 to around $109 per barrel.
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