Crude oil prices declined on Wednesday, due to concerns about excess supply in the market after data showed an unexpected jump in U.S. crude stockpiles.
According to a report from the U.S. Energy Information Administration, U.S. crude oil inventories rose by 3.8 barrels last week.
On Tuesday, data released by the American Petroleum Institute showed U.S. crude stockpiles to have risen by 5.59 million barrels in the week, compared to analyst expectations for a 2.8 million-barrel drawdown.
Crude oil futures for September ended down $1.10, or 1.6%, at $67.66 a barrel on the New York Mercantile Exchange. On Tuesday, crude oil futures for September ended down $1.37 or almost 2%, at $68.76 a barrel.
Despite interruptions in supply from Libya and Venezuela, it is expected that there will be excess supply in the market as Saudi Arabia and Russia have spoken about increasing crude production.
Last week, a report from Baker Hughes said, three rigs were added in the U.S, taking the total rig count in the country to 861.
Meanwhile, trade war concerns have resurfaced again on reports the Trump administration is planning to propose a 25% tariff on goods worth over $200 billion imported from China, instead of the original proposal for a 10% levy.
Escalating trade war could result in a notable drop in demand for crude oil.