Brent crude oil futures fell 2.9% and closed at $50.31 per barrel on the same day.
West Texas Intermediate light crude extended gains after the data and was 1.4%, or 68 cents, higher at $49 a barrel, as of 10:33 a.m. CT (15:33 GMT).
But oil markets were offered some support by official data that showed crude inventories in the United States, the world's top oil consumer, fell sharply last week as refining and exports surged to record highs.
Meanwhile, the EIA added, distillate stockpiles, which include diesel and heating oil, rose by 394,000 barrels, versus expectations for a 755,000-barrel drop.
Rystad Energy is predicting that before the end of this year, monthly us oil production will top the record of 10 million barrels per day that was set in November 1970.
USA crude stockpiles have been steadily declining for eight straight weeks, suggesting that the long-awaited effect from OPEC efforts to reduce world supply are finally coming to fruition.
Oil prices fell on Wednesday, as rising output from Libya added to concerns about increasing US production which is undermining OPEC-led production cuts aimed at tightening the market.
Inventories fell by 6.43 million barrels last week, according to Energy Information Administration data, more than double the median estimate in a Bloomberg survey.
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US drillers this week added 11 rigs, in a record stretch of 20 straight weeks of additions, data from energy services company Baker Hughes showed.
The U.S. withdrawal from the landmark 2015 global agreement to fight climate change drew condemnation from Washington's allies - and sparked fears that U.S. oil production could expand even more rapidly.
"We call USA production the anti-fragile: Something that once shocked comes back stronger and more efficient than ever", said Michael Tran, director of energy strategy at RBC Capital Markets.
November's deal between the Organization of the Petroleum Exporting Countries and non-OPEC members like Russian Federation has been slow to take hold, as many nations sold inventory out of storage before truly cutting exports.
"News that Libyan production is continuing to grow at levels last seen over three years ago, threatens the prospect that, with rising United States output, the OPEC cuts will become nearly meaningless". "But crude production is slowly but surely going to neutralize the (OPEC-led) production cut", said Sukrit Vijayakar, director of energy consultancy Trifecta.
Rising output from OPEC members Nigeria and Libya, which are exempt from the deal, is also undercutting the attempt to limit production.
"Growing demand will be the main factor draining the global oil surplus, but generally at a slower pace than perceived", said Norbert Ruecker, head of macro and commodity research at Julius Baer.
"For now the story is just one of an oversupplied market with the lower end of prices being defended by Opec".
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