US open: Stocks decline on drop in oil prices

US stocks fell on Wednesday as a drop in oil prices offset a better-than-anticipated report on US jobs.

The Dow Jones Industrial average fell 0.14%, the Nasdaq declined 0.08% and the S&P 500 dipped 0.12% at 1603 GMT.

Oil prices were under pressure after data showed US crude inventories rose more than expected last week.

The American Petroleum Institute on Tuesday revealed US crude inventories jumped by 9.9 million barrels last week, more than the 3.6-million-barrel increase analysts had forecast, adding to worries about the supply glut.

The Energy Information Administration on Wednesday reported crude inventories rose by 10.4 million barrels to a total of 518 million barrels last week, almost three than the 3.6 million-barrel increase expected by analysts.

On a brighter note, the US private sector added more jobs than was expected in February, according to the ADP National Employment Report, which could have implications for Friday's closely watched non-farm payrolls report.

According to the payrolls consultant, 214,000 jobs were added during the month, compared with the January figure of 193,000 revised down from the initial 205,000 and beating economists' expectations for 190,000. The ADP headline number beat forecasts in both previous reports in 2016.

"Despite the turmoil in the global financial markets, the American job machine remains in high gear," said Mark Zandi, chief economist at Moody's Analytics.

"Energy and manufacturing remain blemishes on the job market, but other sectors continue to add strongly to payrolls. Full-employment is fast approaching."

Politics are also in focus after Republican and Democrat presidential hopefuls Donald Trump and Hillary Clinton had strong showings in the Super Tuesday primaries.

“The commanding leads now held by Donald Trump and Hilary Clinton have removed some of the uncertainty surrounding the upcoming presidential race. Nevertheless, it is far from clear that either candidate will be good for corporate America,” said Rebecca O’Keeffe at Interactive Investor.

“Over the coming months investors will have to scrutinise each candidate's prospective economic policies carefully to establish what a Trump or Clinton Presidency would really mean for financial markets.”

On the corporate front, oil and gas firm Chesapeake Energy rose after its former chief executive officer, Aubrey McClendon was indicted on charges of conspiring to rig bids.

Abercrombie & Fitch gained after reporting an unexpected increase in quarterly sales.