Crude oil futures fell on Wednesday in reaction to unexpected increase in crude oil inventories. Crude oil futures plunged 3.2 percent or $2.97 to settle at $90.20 per barrel on the New York Mercantile Exchange.

Investors were also pessimistic on situation of euro zone as the latest meeting of euro zone leaders in Brussels failed to produce a plan to tackle region’s sovereign debt crisis. Analyst Tim Evans from Citigroup’s Citi Futures Perspective commented, “While the lack of action would be a clear disappointment in some respects, this is reportedly the EU’s 14th summit in the past 21 months and so to some extent this is very much business as usual, The plan, such as there is one, amounts to extend, pretend, and hope to muddle through.”

The Energy Information Administration reported the increase of 4.7 million barrels in crude oil inventories for the week ending October 21^st, 2011. Analysts expected the increase of 200,000 barrels for the week. Gasoline stockpiles fell by 1.4 million barrels for the respective quarter while analysts expected the decrease of 1.25 million barrels. Distillates inventories, which include diesel and heating oil decreased by 4.3 million barrels while analysts forecasted the decrease of 1.5 million barrels for the week.

Gasoline futures contract November delivery fell 1.8 percent or $0.05 to $2.65 per gallon while heating oil for November delivery declined 1.1 percent or $0.03 to $3.02 per gallon. Natural gas futures contract for November delivery plunged 1.9 percent or $0.07 to $3.59 per million British thermal units.