US crude oil inventories increased more than expected by 1.83 million barrels

US oil inventories data recorded an increase of more than 1.8 barrels, while expectations were hovering around a decrease in the range of 2.4 million barrels.

US Energy Information Administration data revealed an increase in oil inventories by 1.825 million barrels, compared to expectations of a decrease of about 2.400 million barrels, while the previous reading recorded a decrease of 2.508 million barrels.

Oil prices fell during trading on Wednesday morning, amid expectations that the US Federal Reserve may keep interest rates high for a longer period due to ongoing inflation, which may affect fuel use in the world’s largest oil consumer.

US Federal Reserve monetary policymakers said on Tuesday that the US central bank must wait several more months to ensure that inflation is indeed back on track towards its 2% target before cutting interest rates.

Higher borrowing costs could slow economic growth and put pressure on oil demand.