Overnight on Wall Street, the Dow Jones Industrial Average fell 106.46 points, or 0.41 percent, to 26,029.33, the S&P 500 lost 18.06 points, or 0.62 percent, to 2,905.59 and the Nasdaq Composite dropped 41.59 points, or 0.52 percent, to 7,961.23.
Data that showed a larger-than-expected drawdown in U.S. crude inventories boosted oil prices early on Wednesday.
The American Petroleum Institute (API) said on Tuesday that US crude oil stocks fell by 3.5 million barrels to 439.8 million in the week to August 16. Analysts polled by Reuters had expected a decrease of 1.9 million barrels.
Brent crude LCOc1 had risen 13 cents, or 0.2 percent, to $60.16 a barrel by 0136 GMT, after settling 0.5 percent higher on Tuesday.
U.S. crude CLc1 was up 12 cents, or 0.2 percent, at $56.25 a barrel.
Inventory numbers from the government’s Energy Information Administration (EIA) are due at 1430 GMT on Wednesday.
“U.S. inventory data this week will again be a more critical catalyst than usual given that we are nearing the end of peak U.S. driving season,” Stephen Innes, managing partner, VM Markets, said in a note.
Middle East markets
Most stock markets in the region rose on Tuesday.
Saudi Arabia’s index closed 0.3 percent higher as Samba Financial Group rose 2.8 percent, while Riyad Bank added 1.9 percent.
Dubai’s index closed roughly flat, with Emirates Integrated Telecommunications dropping 1.6 percent.
In Abu Dhabi, the index increased 0.8 percent, with First Abu Dhabi Bank gaining 0.7 percent and Emirates Telecommunication Group adding 1.2 percent.
Qatar's index rose 0.9 percent with Qatar National Bank increasing 2 percent and Industries Qatar adding 1.7 percent.
Egypt's blue-chip index also rose 0.8 percent as most companies traded higher. Alexandria Mineral Oils surged 8.7 percent, while Orascom Development gained 2.7 percent.
Kuwait’s premier market index gained 0.6 percent while Bahrain’s index rose 0.4 percent and Oman’s index added 0.5 percent.
The dollar was mainly unchanged early on Wednesday.
The dollar index .DXY, which measures the greenback against a basket of six major currencies was flat at 98.210 after shedding 0.2 percent overnight.
Gold prices also steadied.
Spot gold had inched down 0.1 percent to $1,505.42 per ounce by 0116 GMT.
U.S. gold futures were flat at $1,516.20 an ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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