Oil futures fell sharply on Wednesday after initially extending gains as government data showed a second consecutive weekly fall in U.S. crude oil inventories.



However, a build in gasoline inventories following the end of the U.S. summer driving season and falling refinery runs at the start of maintenance period offset the crude drawdown, John Kilduff, founding partner at Again Capital told CNBC.

U.S. light crude closed down $1.88, or 4.06 percent, at $44.48 a barrel. Benchmark Brent crude tumbled about 3 percent to $48.50 a barrel.



Gasoline demand was "the only thing keeping us alive there for the summer in terms of prices holding up," Kilduff said. "The downward press just keeps reemerging."

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The Energy Information Administration reported U.S. commercial crude stockpiles fell by 1.9 million barrels in the last week, compared with analysts' expectations for an decrease of 533,000.

Refinery crude runs fell 310,000 barrels per day, EIA data showed. Refinery utilization rates fell 2.2 percentage points to 90.0 percent of capacity.

Gasoline stocks rose 1.4 million barrels, compared with analysts' expectations in a Reuters poll for a 819,000-barrel gain.