New York: Oil prices plunged on Wednesday as the increase of last week’s US crude stockpiles came out larger than expected.
US crude supplies of last week gained 2.8 million barrels to 482.8 million barrels, beating market expectation, the US Energy Information Administration (EIA) said in its weekly report on Wednesday.
The US supplies figure was 102.6 million barrels more than a year ago.
US crude production added 48,000 to 9.16 million barrels a day last week, according to the EIA’s report.
The US dollar soared against other major currencies on Wednesday as Federal Reserve Chair Janet Yellen signaled an interest-rate hike by year-end.
A stronger dollar made the dollar-priced crude more expensive and less attractive for buyers holding other currencies.
The West Texas Intermediate for December delivery moved down $1. 58 to settle at $46.32 a barrel on the New York Mercantile Exchange, while Brent crude for December delivery decreased $1.96 to close at $48.58 a barrel on the London ICE Futures Exchange.