Oil prices dropped on Wednesday after factual information from an industry group showed a larger-than-expected development in U.S. crude inventories last week.  This stimulates worries over global oil glut even as a flimsy weaker dollar provided some help.

U.S. crude for December delivery fell 24¢ at $46.05 a barrel after settling up 1¢ at $46.29.  The contract for November ended up on Tuesday and finished down 34¢ at $45.55 per barrel, as reported by the Business Insider.

Brent crude for December delivery had plunged to 9¢ to $48.62 a barrel by 03:13 GMT after settling up 10¢ in the previous sessions.

"Concerns over the potential for a further build (in U.S. crude stocks) in official data (were driving prices lower)", said Michael McCarthy, chief market strategist at Sydney's CMC Markets.

U.S. crude oil inventories grew 8 million barrels last week. Oil prices extended losses before coming off their lows in accordance to traders saying that it was a 1.5 million-barrel drop in gasoline stocks, according to the Energy Information Agency (EIA) as reported by CNBC.   

The build was more than twice the 3.9 million barrels forecast by Reuters' poll analysts and above the 7.1 million build reported by industry group American Petroleum Institute.  The Reuters' poll forecasted a decline of just 900,000 barrels for gasoline and 1.3 million for distillates.

"Gasoline is getting a minor rebound and the market may be impressed. But the bottom line is what's happening in products is more of a function of better cash markets, not a change in fundamentals," said Scott Shelton, energy broker and commodities specialist at ICAP.

However, some analysts are doubtful of how much support gasoline could offer to crude.  Gasoline prices RBc1 settled up a little after the EIA report, according to Reuters.

Slow oil demand from China was a larger factor, veteran oil analyst Jim Ritterbusch said.  "We still see a significant slowing in the Chinese growth path as a longer-term item that will eventually translate to a broad-based 'risk-off' environment."

Mercuria Chief Executive Marco Dunand is expecting just a little increase in the price even if the market oil balanced or has a lack of supply in 2016 as non-OPEC producers reduced supply.