NEW YORK, Sept. 25 (Xinhua) -- Oil prices dropped Wednesday as U.S. crude supplies unexpectedly rose last week.
Energy Information Administration said Wednesday crude supplies climbed for the first time in four weeks. U.S. crude inventories added 2.6 million barrels to 358.3 million barrels for the week ending Sept. 20.
The EIA report also showed that U.S. refineries operated at 90. 3 percent of total capacity, the lowest level since Aug. 9.
The impending debt limit fight in Washington also weighed on the oil market.
Washington faces two looming deadlines: one for funding the government in the new fiscal year beginning Oct. 1; the other for the debt limit, which the U.S. Treasury Department has said will need to be raised by mid-October.
In a television interview, U.S. Treasury Secretary Jacob Lew told Bloomberg Tuesday that investors' confidence in a deal being struck to raise the debt limit was "a bit greater than it should be."
On the U.S. economic front, the Commerce Department reported that U.S. sales of new single-family houses in August jumped 7.9 percent to a seasonally adjusted annual rate of 421,000, beating market consensus.
Moreover, U.S. mortgage applications rose 5.5 percent in the week ending Sept. 20, following an 11.2-percent increase in the prior week, the Mortgage Bankers Association said Wednesday.
Light, sweet crude for November delivery decreased 0.47 dollars to settle at 102.66 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 0.32 dollars to close at 108.32 dollars a barrel.