New York: World oil prices fell on Wednesday (Thursday morning GMT), placing futures contract position near 100 dollars per barrel, although crude inventories fell more than expected and the higher geopolitical tensions.
The US's main contract, light sweet crude or West Texas Intermediate (WTI) futures for September delivery closed at 100.27 dollars a barrel, down 70 cents from Tuesday's closing level on the New York Mercantile Exchange, AFP reported.
In London, Brent North Sea crude for September delivery, fell 1.21 dollars to settle at 106.51 dollars a barrel.
Traders appeared to shrug headlines on gross domestic product (GDP) is better than the official estimate for the United States, the world's biggest crude consumer.
The US economy grew at a robust annualized rate of 4.0 percent in the second quarter, turning up (rebound) of a 2.1 percent decline in the first quarter related to the bad winter weather, the Commerce Department reported.
The dollar was boosted by news GDP, rose to the highest level since 12 November against the euro, at 1.3367 dollars for one euro.
A stronger greenback tends to weigh on dollar-priced oil.
But the Federal Reserve, after a two-day meeting, do not change the key interest rate, which is maintained near zero since late 2008, and maintains its plans to raise its key interest rate only in the second half of 2015.
"US GDP data was stronger than expected, but it raises the idea that the Fed may raise interest rates somewhat faster than previously expected, support a stronger dollar which may limit buying interest WTI," said Tim Evans of Citi Futures.
The Department of Energy said that crude stockpiles fell 3.7 million barrels to 367.4 million barrels in the week ending July 25, nearly double the expected decline.
In the center of the main oil at Cushing, Oklahoma, which serves as a reference for WTI, inventories fell to 17.9 million barrels, the lowest level since November 2008.
Withdrawal and Cushing crude oil supposedly "kind of bullish," said Gene McGillian of Tradition Energy, but "the market ignores it."
Meanwhile, traders also took exception to the rising tensions in the Ukraine and the Middle East, said Tim Evans of Citi Futures.
"Brent Inventories remain at risk of violence in Libya and Iraq, as well as sanctions against Russia, but markets remained calm in the face of it, shows the current inventory enough," he said.
