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The crude being pumped out of USA shale formations helped create a global glut that’s pushed prices down nearly 60 percent since June 2014.

Ninety-five percent of Venezuela’s exports result from crude oil. Exports year-to-date to the USA have risen, but remain under pressure.

Brent crude oil was virtually flat at $48.20 a barrel, heading for a near 10 percent fall this month.

Crude oil futures fell in early Asian trade on Wednesday after US inventories showed a weekly buildup that far exceeded analyst expectations.

– Reuters pic, September 23, 2015.Brent crude oil rose towards US$50 RM217) a barrel on Wednesday as a drawdown in U.S. crude oil stocks outweighed the negative impact of weak economic manufacturing data from China.

US West Texas Intermediate (WTI) crude futures were trading down $1.55, or 3.3 percent, at $45.35 a barrel.

The Federal Reserve’s decision on Thursday to keep short-term rates steady sparked the latest round of selling. “What struck me about [the Fed’s statement] was the reference to what was going on globally”.

Cheap fuel is also hooking consumers, with oil demand growth set to hit a five-year high this year, it added.

It wasn’t like USA markets were in flawless shape before China’s spooked them.

The downdraft from China is rattling economies of its trade-reliant Asian neighbours and prompting many Western companies to reduce investments and look for ways to cut costs.

North American stock markets seesawed once again on Wednesday as investors couldn’t decide whether to be encouraged by China’s recent move to stimulate its economy or anxious that Beijing thinks it needs stimulus in the first place.

Dudley suggested, however, that the Fed’s decision will depend more on global economic troubles then market volatility.

Brazil rules out selling United States dollars reserves to damp fx volatility, repo an option-source.

The Standard & Poor’s 500 index lost 13 points, or 0.6 percent, to 2,083 and the Nasdaq composite fell 29 points, or 0.6 percent, to 5,030.

Trading was more volatile on China’s smaller Shenzhen Composite, which opened higher, but then shed as much as 3% before mounting a recovery.