Global oil prices fell after U.S. supplies disappoint

The U.S. benchmark, West Texas Intermediate (WTI) for August delivery, fell $2.05 to settle at $44.75 a barrel on the New York Mercantile Exchange.

In London, Brent North Sea crude for September delivery, the global benchmark, slid to $46.26 a barrel, shedding $2.21 from Tuesday's close.

The data from the US Department of Energy (DoE) "has put a damper on the overall market," said Carl Larry of Frost & Sullivan. "Supply still seems to be ample. Overall, people still don't think demand is that great."

The contracts had jumped almost five percent Tuesday after OPEC said it expected a global supply glut to shrink this year and next as output by non-cartel producers falls.

But Wednesday's US inventory data weighed on the market. Commercial crude oil inventories declined by 2.5 million barrels in the week to July 8, but remained at historically high levels. Analysts had forecast a fall of three million barrels, according to a Bloomberg News survey.

Product stockpiles meanwhile unexpectedly climbed, including gasoline and distillates such as diesel.

Crude production, which has been steadily falling in recent months, rose by 50,000 barrels per day in the past week.

The crude draw was not large enough to change market sentiment, Larry said. "The tone is bearish."