Singapore - Crude prices changed course and turned lower in Asian trade on Thursday as investors digested data showing weak demand in the United States.
New York's main contract, light sweet crude for March delivery, was down 16c to $87.17 per barrel in afternoon trade, reversing early gains.
Brent North Sea crude for delivery in March dipped 26c to $97.65.
"The crude oil rally reversed course due to concerns on US oil inventories," said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.
Data released by the US Department of Energy (DoE) on Wednesday showed an unexpectedly sharp build in US crude inventories, indicating soft demand.
The DoE said inventories jumped 4.8 million barrels in the week ending January 21, compared to analyst expectations of 900 000 barrels.
Oil prices started the day in Asia on a higher note after the Federal Reserve reaffirmed its commitment to stimulate the US economy through quantitative easing measures, while data also showed American home sales soared.
Developments in the United States are closely watched by global investors because it is the world's biggest economy and the largest oil consuming nation.