Oil prices declined to 10-year lows as Chinese stocks dropped. The People's Bank of China (PBoC) continued to devaluate the yuan. The central bank set the yuan midpoint at 6.5646, down 0.5% from the day before. It was the lowest level since March 2011, and the highest cut since August 2015. Trading was halted after stocks plunged. It was the shortest trading day in the stock market's 25-year history.
Concerns over the global oil oversupply also weighed oil prices. According to the U.S. Energy Information Administration (EIA) on Wednesday, U.S. crude inventories slid by 5.1 million barrels to 482.3 million in the week to January 01.
Analysts had expected U.S. crude oil inventories to decline by 1.5 million barrels.
Gasoline inventories increased by 10.6 million barrels, according to the EIA.
Crude stocks at the Cushing, Oklahoma, climbed by 917,000 barrels.
WTI crude oil for February delivery declined to $32.10 a barrel on the New York Mercantile Exchange.
Brent crude oil for February fell to $32.16 a barrel on ICE Futures Europe.