Oil prices fell nearly 2 percent on Wednesday on growing doubts OPEC will cut production, giving back the gains they clawed back after the U.S. government reported a surprise drawdown in crude inventories.
U.S. crude stockpiles fell 553,000 barrels last week, the U.S. Energy Information Administration (EIA) said, a result contrary to the 1.7 million-barrel build that analysts polled by Reuters had forecast.
Crude inventories in the world's largest oil producer have fallen unexpectedly in seven of the past eight weeks, bucking the trend usually seen during autumn when stockpiles rise as refineries go into maintenance. A preliminary report on Tuesday from the American Petroleum Institute, a trade group, had suggested a build of 4.8 million barrels for the Oct. 21 week.
Oil prices pared losses after the EIA data, with U.S. crude briefly trading in positive territory. But the rebound was limited by doubts about whether OPEC, which meets Nov. 30 in Vienna, will succeed in reducing a global crude glut.