Oil prices fell more than 3% amid rising inventories and a diplomatic push for a ceasefire between Israel and Hamas.

On Wednesday West Texas Intermediate (CL=F) declined for a third day in a row to trade just below $80 per barrel. Brent, the international benchmark price, also fell (BZ=F) to roughly $84 per barrel.

The latest US government data released on Wednesday shows crude inventories rose by 7.3 million barrels last week, the biggest jump since early February.

Meanwhile expectations of a ceasefire in Gaza have increased amid a renewed push from Egypt to revive talks between the Hamas and Israel.

"Futures have been on the defensive on calming Geopolitical issues...traders are realizing no real barrels are being pulled off the global stage (other than [from] Ukraine attacks on Russia) which so far have been temporary disruptions," said Dennis Kissler, senior vice president at BOK Financial on Wednesday in a note to clients.

Ukrainian drone attacks against Russian refineries have sent oil prices higher in the past. The most recent strike occurred within the last 24 hours.

"Even last night’s significant drone strike on one of the largest refineries in Russia has not been able to support oil prices. The market appears to be adequately supplied at the moment," Andy Lipow, president of Lipow Oli Associates, told Yahoo Finance on Wednesday.

Oil alliance OPEC+ is slated to meet next month to determine whether to extend its production cuts into the second half of the year.

Crude's recent decline "is just another reason that OPEC+ at its June meeting will continue with its voluntary production cuts," said Lipow.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.