The U.S. Energy Information Administration (EIA) said in a weekly report on Wednesday that the country's crude oil inventories rose by 3.2 million barrels last week, less than expected.
U.S. gasoline stockpiles fell by 3.2 million barrels last week, while distillate fuel inventories decreased by 4.1 million barrels last week, according to the EIA.
A stronger U.S. dollar made the dollar-priced commodity less attractive for holders of other currencies.
The dollar index, which measures the greenback against six major peers, rose 0.12 percent at 97.1240 in late trading on Wednesday.
The West Texas Intermediate for December delivery dropped 0.86 U.S. dollar to settle at 65.31 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery lost 0.44 dollar to 75.47 dollars a barrel on the London ICE Futures Exchange.