Oil prices fell about 3% to a seven-week low on Wednesday on a surprise build in U.S. crude stocks, the prospect of a Middle East ceasefire agreement and as hopes faded for near-term U.S. interest rate cuts that could boost oil demand.

A raft of data has demonstrated that inflation is proving stubborn, consumer confidence is falling and the U.S. economy is growing more slowly than expected.

Oil futures declined Wednesday, poised for a third straight session loss after official U.S. data revealed an unexpected weekly rise of more than 7 million barrels in domestic crude inventories.