22.03.201703:32:00UTC+00Rising U.S. Crude Stocks Weigh Down Oil Prices

Oil prices fell on Wednesday as rising crude inventories in the U.S. underlined an ongoing global fuel oversupply regardless of an OPEC-led initiative to reduce production.

Brent crude futures traded down 17 cents at $50.79 per barrel, marking a 0.3 percent drop from their previous settlement. Meanwhile, U.S. WTI crude futures shed 18 cents or 0.4 percent from their last close at $48.08 per barrel.

U.S. crude storage posted an increase of 4.5 million barrels in the most recent week, rising to 533.6 million barrels, according to a report by the API. The gain was contrary to the expected 2.8 million barrel drop.

However, analysts are optimistic that EIA's Crude Inventory figures may reverse some of the losses the crude suffered after API's report. The official U.S. inventory data is due to be released later today.

Despite ongoing cuts by OPEC and other non-OPEC members designed to help rebalance the market, U.S. bank Jefferies said that the initiative has not yet dented the global supplies. Analysts also warned of the risks posed by the rising U.S. shale producers' activities and the prospect of OPEC members returning to full capacity.