West Texas Intermediate futures for October delivery fell to $44.31 (-2.42%), while Brent crude dropped to $48.41 (-2.32%) amid weak stock markets and expectations of greater U.S. crude inventories. Late Tuesday the American Petroleum Institute said U.S. crude stocks rose by 7.6 million barrels to 457 million barrels last week beating expectations for a more modest rise. The more precise inventory data from the U.S. Energy Information Administration will be published later today.

Venezuela and China have signed a deal for a $5 billion loan aimed to increasing Venezuela's oil production. No details of the deal were revealed.