Delivering yet another blow to the projections for a speedy resurgence in oil demand, a sharp rise in US fuel inventories led to the plunging of crude futures to a wee bit above $60 a barrel on Wednesday.

The New York Mercantile Exchange saw the light, sweet crude for August delivery settling $2.79 lower at $60.14 a barrel, and Brent crude on the ICE futures exchange settling $2.80 lower at $60.43 a barrel.

According to Department of Energy statistics, demand for fuel has fallen, thereby dispelling the hope that US drivers would hit the road frantically as the gas prices at the pumps being notably lower than the last year prices.

With the Department reporting another increase in gasoline storage by 1.9 million barrels last week, it is the fifth week in a row that gasoline stocks have increased.

Commenting on the disquieting scenario, Clarence Chu, a trader at Singapore's Hudson Capital Energy, said that the reported increase in the gasoline stocks is "not a good sign," as it shows that demand for gasoline has failed to pick up "like it normally does this time of year."

Expressing a similar opinion, Harry Tchilinguirian, senior oil market analyst at London's BNP Paribas, said: "If it's the height of the driving season and ... we still have inventories increasing, it should say something about the underlying weakness in demand."