Crude prices tumbled below 69 U. S. dollars a barrel on Wednesday after government data showed an unexpected jump in crude and fuel inventories, indicating that it would take time for oil demand to truly recover.

Light, sweet crude for November delivery dropped 2.79 dollars, or 3.9 percent, to settle at 68.97 dollars a barrel on the New York Mercantile Exchange.

Oil fell immediately after the U.S. Energy Department's Energy Information Administration (EIA) said that both crude and fuel inventories rose during the week ended Sept. 18. The contract dropped more than three dollars during the session, the most in five weeks.

According to the EIA report, crude stockpiles rose by 2.8 million barrels last week, in a sharp contrast to analysts' prediction of a 1.5-million-barrel fall. Meanwhile, Gasoline inventories increased by 5.4 million barrels and distillates rose 3.0 million barrels to a fresh 26-year high.

In London, Brent Crude for November delivery fell 2.54 dollars to settle at 67.99 dollars a barrel on the ICE Futures exchange.