Oil prices pass $132 after government reports supply drop

Oil prices bolted to a new record above $132 a barrel Wednesday after the government reported that supplies of crude oil and gasoline fell unexpectedly last week. And crude’s rise in the futures market again pressured consumers by pulling prices at the pump higher – a gallon of regular gas rose overnight to a new record above $3.80 a gallon.

In its weekly inventory report, the Energy Department’s Energy Information Administration said crude oil inventories fell by more than 5 million barrels. Analysts had expected a modest increase. Gasoline inventories also fell and took the market by surprise.
AP