NEW YORK (AP) — The price of oil dropped Wednesday after the U.S. reported a surprise increase in supplies.
Benchmark U.S. crude fell by 98 cents to $87.52 per barrel in New York while Brent crude lost 67 cents to $102.75 per barrel in London.
Prices fell after the Energy Information Administration reported that the nation's crude supply grew by 2.7 million barrels last week. Analysts were expecting supplies to fall by 250,000 barrels, according to a survey by Platts, the energy-information arm of McGraw Hill.
U.S. crude supplies have grown this year to the highest levels since 1990.
Gasoline supplies also rose more than expected. The EIA said that gasoline supplies increased by 4.1 million barrels last week. Analysts were expecting supplies to grow by only 750,000 barrels.
Meanwhile retail gasoline increased by nearly a penny to a national average of $3.485 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service. A gallon of regular unleaded has increased by 15.5 cents this month, though it's still cheaper than at the same time last year.
In other futures trading, heating oil lost 1.37 cents to $2.8107 per gallon while gasoline lost 7.23 cents to $2.7525 per gallon. Natural gas fell by 11 cents to $3.077 per 1,000 cubic feet.
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