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Oil falls after another increase in US supplies

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October 30, 2013 12:46 PM EST | AP


NEW YORK (AP) — The price of oil fell more than $1 a barrel Wednesday as the U.S. government reported another big increase in crude oil supplies.

Benchmark U.S. crude for December delivery dropped $1.10 to $97.10 a barrel at midday on the New York Mercantile Exchange. The contract dropped 48 cents on Tuesday and is down about 4 percent in October.

An Energy Department report released Wednesday for the week ended Oct. 25 showed an increase of 4.1 million barrels in crude oil stocks. Over five weeks, supplies have risen by more than 25 million barrels.

Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., expected supplies to rise 3.5 million barrels last week.

The market is also waiting for Wednesday's outcome of a two-day Federal Reserve policy meeting. The Fed is expected to reinforce expectations that it won't begin reducing its mammoth monetary stimulus until next year.

Brent crude, a benchmark for international crude also used by U.S. refineries, slipped 19 cents to $108.82 on the ICE exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline rose 2 cents to $2.63 a gallon.

— Heating oil rose 1 cent to $2.98 a gallon.

— Natural gas rose 1 cent to $3.64 per 1,000 cubic feet.