Oil declined near $66 a barrel as an industry report showed an increase in U.S. crude inventories and after Russia was said to seek rolling back most of OPEC's output cuts within three months.
Futures in New York dropped as much as 1.3 percent after a 0.4 percent gain on Tuesday. The American Petroleum Institute was said to report nationwide crude inventories rose by 833,000 barrels last week. Russia is said to propose that OPEC and its allies be allowed to return production to October 2016 levels, with the producers proportionally sharing out a 1.8 million barrel-a-day increase to their output limit starting as soon as July.
West Texas Intermediate crude for July delivery dropped as much as 84 cents to $65.52 a barrel on the New York Mercantile Exchange and traded at $65.92 at 9:12 a.m in Tokyo. The contract climbed 26 cents to $66.36 on Tuesday. Total volume traded was about 23 percent below the 100-day average.
Brent futures for August settlement slipped as much as 51 cents to $75.37 on the London-based ICE Futures Europe exchange. Prices slid 0.8 percent on Tuesday. The global benchmark traded at a $9.67 premium to WTI for the same month.