Oil falls below $45.00 after US supply data

Oil prices fell sharply during the New York session following the release of the EIA crude oil inventories, which showed crude stockpiles fell less than expected, while US output edged higher in the latest week.

West Texas Intermediate crude for August delivery lost 4.0% and hit a low of $44.75 a barrel on the New York Mercantile Exchange, erasing completely previous day’s gains. It was trading around $46.25/bbl before the data.

The US Energy Information Administration reported that crude output fell by 2.546 million barrels for the week ended July 8, below the decline of 3.0 million barrels expected.