Notwithstanding the small crude inventory build reported by the Energy Information Administration and the American Petroleum Institute, “traders are aware that the market remains tight, the natural gas crisis in Europe continues and [liquefied natural gas] shipping lines remain clogged, while demand for all fuel types — coal, gas and oil — remains robust,” he said.

West Texas Intermediate crude for December delivery fell $1.99, or nearly 2.4%, to settle at $82.66 a barrel on the New York Mercantile Exchange, after ending Tuesday at another seven-year high. December Brent crude the global benchmark, lost $1.82, or 2.1%, at $84.58 a barrel on ICE Futures Europe, after closing Tuesday at a three-year high. January Brent the most actively traded contract, fell $1.78, or 2.1%, at $83.87 a barrel.

The Energy Information Administration reported on Wednesday that U.S. crude inventories rose by 4.3 million barrels for the week ended Oct. 22. On average, analysts polled by S&P Global Platts expected a 100,000-barrel decline, but the API on Tuesday reported a 2.3 million-barrel climb, according to sources. However, the EIA data also revealed that crude stocks at Cushing, Oklahoma, the delivery hub for Nymex futures, fell by 3.9 million barrels for the week. “While the headline crude build may be viewed as bearish, another significant drop in Cushing inventories — now down to 27 million barrels, the lowest since October 2018 — is likely set to limit today’s selloff,” said Matt Smith, lead oil analyst, Americas, at Kpler. “At the recent pace of draws, Cushing could be close to tank bottoms by December.”