West Texas Intermediate (WTI) crude futures CLc1 dropped 44 cents, or 0.8%, to $55.53 per barrel. U.S. crude closed 3.3% higher in the previous session. "Oil is seeing profit-taking in Asia after last night's sharp up-move," said Jeffrey Halley, senior market analyst at OANDA. U.S. crude inventories fell 1.7 million barrels in the week ended October 18, compared with analysts' expectations for a 2.2 million barrel build, data from the Energy Information Administration showed. This was in stark contrast with earlier inventory data released by industry group the American Petroleum Institute (API), which showed a build of 4.5 million barrels in U.S. crude stocks. The EIA said the drawdown in weekly stocks came as refineries hiked crude runs and oil imports fell, which prodded a jump in both benchmark crude grades on Wednesday. But persistent concerns about weak demand outlook continue to weigh on market sentiment, traders said.