U.S. crude futures ended Wednesday trading 1.21 percent lower after a government report showing an eighth straight weekly drop in U.S. crude stockpiles was offset by a large build in oil products, which have dominated market action lately.
A firm dollar also weighed on oil, while uncertainties about progress in the Greek debt and Iran nuclear crises led to further caution among investors and traders.
"It could ultimately turn out be a choppy day from the push-and-pull between crude and products," said Tariq Zahir, an oil bear at Tyche Capital Advisors in Laurel Hollow in New York.
"The focus will likely turn to Greece and the Iran nuclear deadline in an attempt to break out of the trading range we've been in over the past two weeks," he added.
Brent crude futures were down 96 cents, or 1.49 percent, at $63.50 a barrel by 2:35 p.m. EDT. Brent has been trapped in the $62-$65 range over the past two weeks.