Oil prices drop after big jump in supplies
NEW YORK (AP) — Oil fell after the government reported a bigger-than-expected increase in supplies in the U.S.
The Energy Department said inventories of crude oil rose by 4.2 million barrels last week. Analysts were expecting an increase of just 1 million barrels. The report indicated that demand for oil in the U.S. remains weak.
West Texas Intermediate, which is used to price oil produced in the U.S., fell 61 cents to $105.95 per barrel. The price declined both Monday and Tuesday after reaching a nine-month high last week.
Brent crude, which is used to price international oil, gained 20 cents to $121.75 in London.
Oil was higher earlier, after the U.S. government said the economy expanded at a 3-percent annual rate in the fourth quarter. That's up from a prior estimate of growth of 2.8 percent. Americans also earned more income in the final three months of 2011 than previously reported.