US crude oil tumbles 8.7%, as inventories jump to record high

Oil prices tumbled on Wednesday, bringing a four-session rally to an end, as US crude prices fell over 8%, their biggest one-day drop since November.

US crude inventories reached a record high, rising by 6.3m barrels last week to 413.06m barrels, the highest level since records began in 1982 and the fourth consecutive week the index has risen.

West Texas Intermediate futures settled down 8.7%, at $48.45 a barrel, registering its largest one-day percentage drop since 28 November, having closed 7% up on Tuesday.

Brent crude was $4 lower at $54 a barrel, having traded as high as $59 a barrel on Tuesday.