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Oil Settles Lower After Data Shows Jump In Gasoline Stockpiles

Crude oil prices drifted lower on Wednesday after official data from U.S. Energy Information Administration showed a drop in crude oil stockpiles but a big jump in gasoline supply.

The data also showed a big jump in distillate stockpiles in the week ended July 11.

West Texas Intermediate crude oil futures for August ended down $0.84, or about 1.5%, at $56.78 a barrel.

On Tuesday, WTI crude oil futures for August tumbled $1.96, or 3.3%, to $57.62 a barrel.

Speculation about fresh U.S.-Iran negotiations and concerns about the outlook for energy demand dragged down oil prices for a second straight day.

According to data released by EIA earlier in the day, crude inventories in the U.S. dropped by 3.1 million barrels last week compared to expectations for a drop of about 2.7 million barrels.

The data also showed gasoline inventories were up 3.6 million barrels, compared with expectations for a 925,000-barrel decline.

Meanwhile, distillate stockpiles rose by 5.7 million barrels in the week, substantially more than the expected 613,000-barrel increase.

On Tuesday, the American Petroleum Institute reported a small crude oil inventory draw of 1.4 million barrels for the week ended July 11, compared to analyst expectations for a decrease of 2.7 million barrels.

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