West Texas Intermediate futures for October delivery slid to $46.06 (-0.41%), while Brent crude declined to $50.19 (-0.61%) amid a mixed report from the Energy Information Administration. Data released on Wednesday showed that U.S. commercial crude stocks rose 4.7 million barrels to 455.4 million barrels in the week ended August 28. At the same time crude output fell 119,000 barrels to 9.22 million a day. Gasoline inventories fell 300,000 barrels to 214.2 million.

Analysts said that a looming rate hike by the Federal Reserve continues to weigh on oil. That's why investors will watch tomorrow's jobs report closely. This report is a key indicator of conditions of the U.S. labor market.

Some experts say that oil fundamentals are unlikely to change for the better as demand is seasonally weak.