The American Petroleum Institute (API) on Tuesday reported an increase of 6.035 million barrels of crude oil in U.S. inventories for the week ending Sept. 9, Trend reports citing Xinhua.
Analysts had expected a drop of about 0.2 million barrels for the week.
The API reported a surge of 3.645 million barrels in the previous week.
Oil prices declined on Tuesday, driven by a hotter-than-expected U.S. inflation report increasing the likelihood of another big rate hike from the Federal Reserve, which could subdue demand for energy.
The West Texas Intermediate for October delivery decreased 47 cents, or 0.5 percent, to settle at 87.31 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 83 cents, or 0.9 percent, to settle at 93.17 dollars a barrel on the London ICE Futures Exchange.
The U.S. Labor Department reported Tuesday that the country's consumer price index (CPI) rose 0.1 percent in August on a seasonally adjusted basis. The core CPI, which excludes food and energy, rose 0.6 percent. The readings were higher than market expectations.
The U.S. dollar rallied following the release of the inflation report.