U.S. crude oil inventories rose by 1.3 million barrels last week, while stocks of gasoline and diesel increased amid higher refinery capacity use, according to data released by the EIA.

Crude oil futures finished lower for a second straight session after an rally on a report that Israel may be preparing to attack Iran’s nuclear facilities fizzled out. A potential strike on Iran, which produces 3.

Oil prices fell for a third straight session on Thursday as unexpected increases in U.S. crude and fuel inventories raised concerns about demand from the world's largest oil consumer while investors eyed renewed Iran-U.