US oil slumps 4.1%, at $44.48 a barrel

Oil futures fell sharply on Wednesday after initially extending gains as government data showed a second consecutive weekly fall in US crude oil inventories. 

However, a build in gasoline inventories following the end of the US summer driving season and falling refinery runs at the start of maintenance period offset the crude drawdown, John Kilduff, founding partner at Again Capital said. US light crude closed down USD 1.88, or 4.06 percent, at USD 44.48 a barrel. Benchmark Brent crude tumbled about 3 percent to USD 48.50 a barrel. 

Gasoline demand was "the only thing keeping us alive there for the summer in terms of prices holding up," Kilduff said.

 "The downward press just keeps reemerging." The Energy Information Administration reported US commercial crude stockpiles fell by 1.9 million barrels in the last week, compared with analysts' expectations for an decrease of 533,000.

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