U.S. crude inventories rose by 1.96 million barrels in the week ending Sept. 13, market sources said on Tuesday, citing data from the American Petroleum Institute.
Gasoline and distillate stocks also increased.
Price movements
Crude futures fell Brent November delivery was up 92 cents, or 1.25 percent, at $72.78 a barrel by 11:00 GMT.
U.S. crude futures for October delivery also fell 95 cents, or 1.33 percent, to $70.24 a barrel.
It is expected to be announced US Federal Reserve First rate cut in four years at 18:00 GMT, with markets expecting a 50 basis point cut at 63%.
Prices received some support from the possibility of an escalation of violence in the Middle East, which could disrupt production in a pivotal region.
Following the API report, the US Energy Information Administration report is scheduled to be released on Wednesday at 14:30 GMT.
Analysts polled by Reuters estimated that crude stocks fell by an average of about 500,000 barrels last week, with fuel and distillate inventories rising slightly.
