Oil Falls Further After Another Bump In Supplies

Oil futures dropped further on Wednesday after the U.S. Energy Information Administration reported a larger-than-expected increase in U.S. crude supplies, keeping inventories at their highest in 80 years. The EIA said oil supplies rose by 8.9 million barrels in the week ended Jan. 23. Analysts polled by Platts had expected an increase around 3.5 million barrels. At 406.7 million barrels, U.S. inventories are at their highest since early 1924. Gasoline inventories dropped by 2.6 million barrels, whereas distillates supplies dropped by 3.9 million barrels, the EIA said. The analysts surveyed by Platts had expected gasoline stockpiles up 830,000 barrels, and distillate stockpiles down 580,000 barrels. Crude for March delivery was recently down $1.24, or 2.6%, to $45.04 a barrel on the New York Mercantile Exchange.