U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 27 cents at $68.69 a barrel by 10:45 a.m. EDT (1445 GMT). The market expected 1.3 million barrels of gasoline draw.
Output by top exporter Saudi Arabia has also risen recently, to around 11 million bpd, and USA production C-OUT-T-EIA is around that level as well.
US crude oil exports averaged 1.31 million barrels per day last week, down by 1.37 million barrels per day from the previous week.
While U.S. sanctions on Tehran could quickly tighten the physical market later this year, supplies are now plentiful as the Saudis and Russians boost production before the market loses significant Iranian supply.
After the market closed Tuesday, the American Petroleum Institute reported domestic crude oil inventories swelled by 5.6 million barrels last week, compared to a draw forecast by S&P Global Platts.
The decision has helped to put a lid on a price rally, with crude futures falling more than 7 percent since climbing above $80 a barrel in May.
Crude oil prices turned sharply lower ahead of the start of trading on Wednesday in NY after a surprise build in crude oil inventories in the United States.
Healthcare added 34% fewer jobs in July
Another positive sign was the U-6, or underemployment rate, which fell to 7.5 percent, the lowest since 2001, from 7.8 percent. The U.S. unemployment rate dropped slightly in July, while job gains were lower than many analysts predicted.
Stocks at the key Cushing storage hub in Oklahoma fell by 1.3 million barrels, the lowest level since October 2014, according to data from the Energy Information Administration (EIA). "Brent oil may fall to $67 per barrel", said Reuters technical commodities analyst Wang Tao.
It produced about 11.21 million barrels per day, an increase of 140,000 from a month earlier, according to Bloomberg calculations based on the ministry's data.
Oil prices strengthened Thursday, with USA crude gaining almost 2 percent after traders saw an industry report suggesting domestic crude stockpiles would soon decline again after a surprise rise in the latest week.
The Reuters survey released earlier this week suggests that OPEC (Organization of the Petroleum Exporting Countries) increased production last month by 70,000 barrels per day (bpd) to 32.64 million bpd, a new high for the year. Although the sanctions don't officially take effect until November, Iran is already seeing customers flee as the USA imposes penalties on buyers after Trump quit a nuclear accord with the country. "Yet, we remain much more concerned about the ongoing USA sanctions on Iran", analysts at Bank of America Merrill Lynch said in a research note published last week.
China said it would hit back if the United States takes further steps on trade.
U.S. President Donald Trump has sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports.
The EIA also reported US crude exports posted the biggest decline on record last week, while USA crude production fell for the first time since February.
The two countries have already imposed £26bn ($34bn) worth of tariffs on each others' goods as the trade war ramped up in July. The ministry also said that the U.S. measures violated the World Trade Organization rules and damaged China's interests.
The probe found she was having regular unauthorised meetings with the main Russian intelligence agency, the FSB. The woman got a job at the Embassy officially, and her candidacy approved by the United States Secret service .
Apple's stock market value is greater than the combined capitalisation of Exxon Mobil, Procter & Gamble and AT&T. Cook emphasized the company's innovation and principles make Apple one of the world's most valuable businesses.
Two firefighters were among the seven people killed since the wildfire began. "It's not good firefighting weather", Anderson said. The fire burned slowly for days before winds suddenly whipped it up last week and drove it furiously through brush and timber.
Jorginho was on the verge of joining Manchester City mere days before it was announced that he had signed with Chelsea for £53m. Pedro is a player who should see his production increase this season as Chelsea makes a change in base formation .
Health officials flew six blood samples to the capital of Kinshasa, where four tested positive for the Ebola virus. Over 50 people were infected in the Equateur outbreak and 33 died, Congolese officials said.
United have been long-time admirers of the Belgian defender, who has long made clear of his desire to leave Spurs . Toby Alderweireld is reportedly on the verge of completing a transfer to Manchester United .
Between April and July India's oil imports from Iran has risen by an annual 40% to about 677 500 bpd, the data showed. President Donald Trump's decision to pull out of an global nuclear deal and reimpose sanctions on Tehran .
Ryanair pilots to stage further strike
The Forsa trade union, which had called for such a move, welcomed Ryanair's response and said it would recommend to pilots. The airline is bracing itself for another round of strike action next Friday, when 25 per cent of its pilots will strike.
How do Druze Israelis view the 'nation-state' law?
Israeli Druze leaders say their alliance with Jews dates back long before they helped them win independence in 1948. Lawmaker Avi Dichter, a co-sponsor of the law, was heckled by Druze in attendance at another meeting.
Woods-Mickelson match set for Thanksgiving
Their relationship, frosty in their primes, has thawed in recent years as age and life experiences have brought them closer . The purse has yet to be finalized, per Greenberg, but previously was reported to be $10 million.
Soldier rescued after surviving week on New Zealand mountain
Wanaka LandSAR alpine rescue team leader Davie Robinson said they found him "cold, exhausted and dehydrated" but conscious. The alarm was raised on Monday and rescue crews watched his beacon moving around the mountain for days as concerns grew.
Heatwave temperatures may top 45C in southern Europe
Heat warnings have also been put in force for most of Spain - as a band of hot air drifts across the country from Africa. Two men have died of heat-stroke in the southeastern region of Murcia, Cadena Ser radio station reported on Wednesday.