03:43 PM EST, 03/05/2025 (MT Newswires) -- Commercial crude stockpiles in the US climbed more than projected last week even as distillate fuel and total motor gasoline inventories posted draws, government data showed Wednesday.

Inventories of crude, excluding the strategic petroleum reserve, advanced by 3.6 million barrels to 433.8 million barrels through the week ended Friday, the Energy Information Administration said. The consensus was for a gain of 800,000 barrels, according to a Bloomberg poll.

Distillate fuel stocks fell by 1.3 million barrels, while total motor gasoline slid by 1.4 million barrels. Propane and propylene inventories dropped by 2.9 million barrels. Total commercial petroleum inventories declined by 4.6 million barrels last week.

Refineries operated at 85.9% capacity, down from 86.5% the week earlier. Gasoline production increased, while distillate fuel output cooled, the data showed.

West Texas Intermediate crude oil fell 2.7% at $66.41 a barrel in late-afternoon trade, while Brent was down 2.3% at $69.40.

"Crude oil trades lower amid fears that a global trade war may negatively impact global economic activity and, with that, demand for fuel products," Saxo Bank said in a Wednesday note.

President Donald Trump is exempting automakers from tariffs on Mexico and Canada for a month, CNBC and Bloomberg reported Wednesday. His recently announced 25% tariffs against the two nations went into effect Tuesday, while the US government doubled its levy on Chinese imports. Canada and China have announced counter measures.

The prospect of rising supply from the Organization of the Petroleum Exporting Countries and its allies is also hitting oil market sentiment, ING Bank said in a note.