US crude dipped to $108.81 a barrel due to a sharp increase in US crude inventory.

US crude fell by $0.43 to $108.81 a barrel, while ICE Brent crude for June LCOc1 fell $0.09 to $121.10 a barrel, reports Reuters.

The US Department of Energy said crude stocks increased by 3.4 million barrels even as imports fell.

Concerns that China may tighten its monetary policy to combat inflation has also led to the fall of oil prices.