Oil fell over 2% today after a US government report showed crude stockpiles fell less than expected last week, easing supply concerns in the world's top consumer.
US oil traded down $2.38 at $92.04 a barrel after falling as low as $91.42 earlier. Brent crude lost $1.50 to $91.02 a barrel.
US crude inventories fell 400,000 barrels last week, less than half of what analysts had expected, as imports offset higher demand from the nation's refineries, according to the US Energy Information Administration.
Crude stockpiles in Cushing, Oklahoma - the delivery point for US crude futures - rose 600,000 barrels over the same period, according to the EIA.
Analysts said the report may alleviate some of the concerns about consumer supplies ahead of the winter, which had helped send oil to a record above $99 a barrel last week.
Oil prices have surged from below $70 a barrel in August to near $100 on the weaker US dollar, a rush of speculative investment, and worries supplies might be stretched to meet demand during the Northern Hemisphere winter.
But concerns about the faltering economy in the giant US market and expectations OPEC may increase output when it meets next week in Abu Dhabi have helped send prices lower.