Crude oil prices slipped below the key level of $125 a barrel on Wednesday as US crude and products inventories rose less than expected ahead of the driving season in the US, when petrol consumption rises as Americans hit the road for their holidays.

The US energy department reported an increase of 200,000 barrels of crude oil in stocks by the end of last week, far less than the rise of 1.8m barrels expected by Wall Street analysts.