Oil falls after crude inventories jump

NEW YORK – Energy futures fell Wednesday, at times dropping below $90 a barrel after the government said crude oil supplies jumped unexpectedly last week.

In its weekly inventory report, the Energy Department’s Energy Information Administration said crude oil supplies rose by 4.3 million barrels last week, the first increase since the week ended Nov. 9. Analysts surveyed by Dow Jones Newswires on average expected a decline of 300,000 barrels.


“The crude number was pretty surprising,” said Brad Samples, a commodities analyst at Summit Energy Services Inc. in Louisville, Ky., who added that crude supplies could be set to rise further. “This could be a turning point.”

Supplies of gasoline and distillates, which include heating oil, rose last week roughly in line with expectations.

Light, sweet crude for February delivery fell $1.06 to settle at $90.84 a barrel on the New York Mercantile Exchange after falling as low as $89.26 earlier. It was the first time since Dec. 19 the price of crude traded below $90.

AP