Crude prices drop as US supplies rise

Crude prices dropped Wednesday as U.S. crude supplies of last week increased more than expected.

The Energy Information Administration (EIA), the Energy Department's statistical arm, Wednesday released its report covering U.S. crude supplies of the week ended Oct. 3.

Crude stockpiles added 5 million barrels to 361.7 million barrels, beating market's expectation of an increase of 2 million barrels.

Technology and high prices are opening up new oil resources from North America. U.S. domestic crude production rose to 8.875 million barrels per day last week.

Trader regarded the EIA report "bearish" as weak demand for fuel put a lot of pressure on the oil market.

Downbeat global economic prospect continued to weigh on the markets.

The International Monetary Fund (IMF) on Tuesday lowered its global economic growth forecast for 2014 and 2015 for the third time this year. In its updated economic outlook, the IMF expected the global economy to grow 3.3 percent in 2014 and 3.8 percent in 2015, down 0.1 percentage point and 0.2 percentage points from its July forecasts, respectively.

Light, sweet crude for November delivery fell 1.54 U.S. dollars to settle at 87.31 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery lost 73 cents to close at 91.38 dollars a barrel.