Oil prices fell from recent 18-month peaks, as traders digested rising US crude inventories that suggested weaker demand in the world's biggest energy consuming nation.
New York crude for delivery in May, dropped 75 cents to $86.09 a barrel.
Brent North Sea crude for May fell 44 cents to $85.71 per barrel.
The US Energy Information Administration (EIA) said Wednesday that American oil inventories advanced by two million barrels in the week ending April 2.
That was far more than market expectations for a gain of 1.3 million barrels last week, according to analysts polled by Dow Jones Newswires.
Gasoline or petrol stockpiles tumbled by 2.5 million barrels, while distillates - which include diesel and heating fuel - rose 1.1 million barrels.
Crude futures had briefly hit a fresh 18-month high on Tuesday as the market found support from a recent batch of encouraging economic indicators in the United States, the world's largest energy consuming nation.
New York crude had touched $87.09 - the highest level since October 9, 2008.
The EIA said it was reducing its US demand estimate for 2010 to 160,000 barrels of crude per day, compared with 200,000 barrels in its previous report.
