Crude oil futures fell on Wednesday as investors raised concerns if debt ceiling talks will be resolved. Analysts from Barclay commented, “With the U.S. failing to reach any agreement to tackle their debt issues, the probability of a downgrade remains, this, along with seasonal illiquidity, is likely to keep the downward pressure on prices intact, as they are caught between the restraining influence of the headline risks, and the support of its own fundamentals.”

Moreover the latest oil inventories data from Energy Information Administration further added to bearish sentiments of crude oil.

As per the latest report of Energy Information Administration oil stockpiles increased by 2.3 million barrels for the week ended July 22^nd, 2011 whereas analysts’ forecasted the decline of 1 million to 2 million barrels in oil stockpiles for the respective week.

Gasoline inventories also surged  by 1 million barrels while distillates stockpiles which include diesel and heating oil were increased by 3.4 million barrels as per the EIA data.

Crude oil futures contract for September delivery fell 2.2 percent or $2.19 to $98.24 per barrel on New York Mercantile Exchange while gasoline futures contract for August delivery dropped 0.4 percent or $0.01 to $3.14 per gallon.

Heating oil for August delivery also declined 1 percent or $0.03 to $3.08 per gallon on Wednesday.

Natural gas futures contract for August delivery remained unchanged at $4.37 per million British thermal units.