Oil turns lower, dips below $42.00/bbl

After briefly rising above $43 a barrel, WTI futures turned lower and dipped into the red, on the back of the EIA oil inventories report.

US Energy Information Administration reported that domestic crude supplies climbed, but inventories of gasoline and distillates, declined in the week ended Aug. 5. Crude inventories rose 1.1 million barrels versus a drop of 1 million barrels expected, but below the American Petroleum Institute 2.1 million barrels increased reported by API on Tuesday.

WTI initially moved higher and peaked at $43.39 a barrel but then surrendered gains and gave way to weakness, falling more than 2% to a low of $41.82. WTI was last trading at $42.00 a barrel, down 1.8% on Wednesday.