Oil prices fell after the government reported a bigger than expected increase in supplies in the US.
The Energy Department said inventories of crude oil rose by 4.2 million barrels last week. Analysts were expecting an increase of just 1 million barrels. The report indicated that demand for oil in the US remains weak.
West Texas Intermediate, which is used to price oil produced in the US, fell 61 cents to $105.95 a barrel on the New York Mercantile Exchange. The price declined both on Monday and Tuesday after reaching a nine-month high last week.
Brent crude, which is used to price international oil, gained 20 cents to $121.75 in London.
Oil prices were higher in earlier trade, after the US government said the economy expanded at a 3% annual rate in the fourth quarter. That was up from a prior estimate of growth of 2.8%.
Americans also earned more income in the final three months of 2011 than previously reported. But economists cautioned that growth is likely slowing in the current quarter as companies spend less on restocking their warehouses.
Petrol prices rose for the 22nd consecutive day to a national average of $3.73 per gallon.
The US Energy Department said petrol supplies shrank by 1.6 million barrels, or 0.7%, to 229.9 million barrels - 2% less than the same time last year. Analysts had expected petrol supplies to decrease by 180,000 barrels.
Demand for petrol over the four weeks ended February 24 was 6.7% lower than a year earlier, averaging 8.3 million barrels a day.
