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Prices Fall After Unexpected Jump In Crude Oil Supples

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By JOHN WILEN, The Associated Press

Published: January 17, 2008

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

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 in Louisville, Ky., who added that crude supplies could rise further. "This could be a turning point."

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

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

Wednesday was also the first time in several sessions that concerns about the economy weren't the main driver behind falling oil prices, although there were more signs of economic cooling when the Federal Reserve said industrial output was flat in December.

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