Crude prices resumed downside trend on Wednesday as investors doubted Europe's willingness and ability to solve the debt problems and U.S. weekly crude inventories rose fast than expected.
After the surge on the previous trading day, crude resumed declines as worries about European debt crisis re-surfaced. Markets were wary of euro-zone's coordinated plan to provide Greece with more bailout fund and to ease the debt crisis after proposal for expanding the European Financial Stability Facility were opposed by several European officials, including Germany's finance minister.
More supplies in U.S. also weighed on crude prices. U.S. Energy Information Administration reported that U.S. crude inventories added 1.9 million barrels in the week ending Sept. 23, larger than estimates. In the previous week, the inventories fell 7.3 million barrels.
Also, Libya is making progress in restoring oil production, further contributing to pressure on the market.
According to investment bank J.P. Morgan's forecast, Libya's oil output would reach 300,000 barrels a day by December thanks to better-than-expected progress in eastern fields.
Light, sweet crude price for November delivery plunged 3.24 dollars, or 3.84 percent to 81.21 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude price for November delivery also tumbled 3.33 dollars, or 3.11 percent, to close at 103.81 dollars a barrel.
