Oil started the day rallying on a report by the U.S. Energy Information Administration for a draw down of 6 million barrels in U.S.crude inventories for the week ended September 29.
And then oil fell on reports of a surge in U.S. oil experts large enough to raise fears that U.S. light sweet crude would flood global markets just as oil demand moves into seasonal weakness.
U.S. benchmark West Texas Crude fell 1.05% to break below the $50 level at $49.89 a barrel. International benchmark Brent fell 0.45% to $55.75 a barrel.
U.S. crude exports jumped to a record 1.98 million barrels a day. U.S. oil production rose for a fourth week. U.S. oil shale producers are also putting downward pressure on oil prices as they rush to hedge production in the futures market with oil near $50 a barrel.