NEW YORK, Sept. 12 (Xinhua) -- U.S. crude prices fell on Wednesday as U.S. oil inventories gained more than expected last week.
The Energy Information Administration said U.S. oil stocks added 2 million barrels in the week ending Sept. 7, far beyond markets' expectation of a 2.6-million barrel decrease. The unexpected increase came as oil imports picked up in the week after the Hurricane Isaac, which moved U.S. total inventories back to the extremely high level and pressure the U.S. crude prices heavily.
But the Brent was supported by the German constitutional court' s decision on the eurozone permanent rescue fund, or European Stability Mechanism. Germany's top court on Wednesday dismissed a complaint against ESM, clearing the way for implementation of the important tool to tackle the ongoing debt crisis and fueling further optimism about the bloc's economic future following the European Central Bank's announcement of a new round of bond purchase plan last week.
Besides, the U.S. Federal Reserve started its highly anticipated policy meeting on Wednesday. The hopes for more easing policies have helped push up the prices on the crude markets.
And the geopolitical risk came back into focus after the U.S. ambassador to Libya Chris Stevens was killed in attacks in Benghazi, an eastern city of Libya, on Tuesday. Tension between the U.S. and the Middle East tended to intensify, which could pose great threat to the oil production there.
Moreover, the dollar weakened against most major currencies ahead of Fed's decision. A soft dollar offered supports to the greenback-denominated crude oil.
Light, sweet crude for October delivery dropped 16 cents, or 0. 16 percent, to settle at 97.01 dollars a barrel on the New York Mercantile Exchange. But in London, Brent crude for October delivery gained and last traded around 116 dollars a barrel.