The buildup in inventories shows that the U.S. market is well supplied. Even before the DOE report, Platts said that total inventories are roughly 2 percent higher than the five-year average.
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"There just aren't a lot of factors that will take crude higher right now. The market is well-supplied and geopolitical issues don't appear to be too threatening," said Anthony Grisanti, president of GRZ Energy.
Grisanti thinks the fact that supplies are above the five-year average is significant. "The U.S. is producing more product. That's the bottom line, and as long as that continues, it will pressure prices," he said.
Traders expect domestic oil prices to fall under $90 a barrel in the short term, even though it bounced Tuesday on a slightly weaker dollar, comments from OPEC, Chinese stimulus and an equity rally ahead of Wednesday's Fed statement.
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"Dollar strength is an important factor. As long as the dollar Index stays over $84, it will send crude lower," Grisanti said.
But buyer beware. Grisanti and others point out that lower gasoline prices could be short-lived. Even though retail gas prices tend to bottom out between Thanksgiving and the Martin Luther King holiday, they rally again in the spring.
"Production cuts take time to implement. I don't think producers will go down that road because before you know it, spring demand will be back on the table," Grisanti said.
—By CNBC's Jackie DeAngelis