World Crude Fell after US Energy Report

World crude retreated sharply Wednesday on U.S. weekly energy supply report.

New York's main contract, light sweet crude for delivery in September, fell 1.34 dollars to close with 71.76 dollars per barrel.

In London, Brent North Sea crude for delivery in October, lost 1.22 dollars to settle at 72.02 dollars per barrel.

The U.S. Department of Energy reported Wednesday that crude supplies for the week ended Aug. 20 fell by 600,000 barrels to 330.4 million barrels, or 5 percent higher than last year.

U.S. inventories of gasoline grew by 400,000 barrels last week to 205.8 million barrels, or 2.8 percent more than a year ago.

The domestic supply of distillate fuel, which includes diesel and heating oil, grew by 2.3 million barrels to 135.5 million barrels, leaving supplies less than 1 percent below year ago levels.

Meanwhile, traders' concerns over Iran eased. The White House said Wednesday it was "carefully reviewing" Iran's response. Iran gave its response to the incentives package on Tuesday, but refused to suspend uranium enrichment, a key demand by the U.S. and the West.