Thursday, 25 October 2012

Oil drops for 4th day on big rise in US supplies

(AP) ? The price of oil fell Wednesday after the U.S. reported an unexpectedly large increase in crude supplies.

Oil supplies grew last week by 5.9 million barrels, or 1.6 percent, the Energy Department said. At 375.1 million barrels, the nation's oil inventory is 11.1 percent above year-ago levels. Analysts expected a much smaller increase.

Benchmark oil fell $1.45, or 1.7 percent, to $85.22 per barrel. The price has dropped more than 7 percent since closing Thursday at $92.10. Brent crude fell 80 cents to $107.45 per barrel in London.

Drivers are seeing lower prices at the gas station. The nationwide average for a gallon of regular has dropped 13 cents from a week ago, to $3.63. That's the biggest 7-day drop since late November, 2008, according to Oil Price Information Services analyst Fred Rozell.

In other futures trading in New York:

? Wholesale gasoline fell 2 cents to $2.57 per gallon. Gasoline supplies grew by 1.4 million barrels to 198.6 million barrels last week, the government said.

? Heating oil fell 2 cents to $3.01 per gallon.

? Natural gas broke the trend, fell 7 cents to $3.46 per 1,000 cubic feet, reversing Tuesday's gains.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-10-24-Oil%20Prices/id-e88e3215bf4341e8828cee3e0950385c

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