U.S. light, sweet crude plunged, as did London Brent crude.
U.S. crude inventories fell 400,000 barrels last week, less than half of what analysts had expected, as imports offset higher demand from the nation's refineries, according to the U.S. Energy Information Administration.
Crude stockpiles in Cushing, Oklahoma, -- the delivery point for U.S. crude futures -- rose 600,000 barrels over the same period, according to the EIA.
Analysts said the report could alleviate some of the concerns about consumer supplies ahead of the winter, which had helped send oil to a record above $99 a barrel last week.
"Given that we have had so many bullish reports with (refinery) utilization lower and crude falling, this is the first sign that supplies may have a chance to increase," said Peter Beutel, president of Cameron Hanover.
"This puts additional pressure on markets that seem to have second thoughts on its ability to print $100 a barrel."
Oil prices have surged from below $70 a barrel in August to near $100 on a weaker U.S. dollar, a rush of speculative investment and worries that supplies might be stretched to meet
demand during the Northern Hemisphere winter.