Oil prices little changed on gov't supply report

NEW YORK (AP) ? Oil prices were a little lower Wednesday, holding around $88 per barrel after a mixed reading about U.S. energy demand.

Benchmark crude fell 50 cents to $88.05 per barrel in midday trading in New York. Brent crude fell 45 cents to $110.70 a barrel in London.

The government reported that U.S. oil supplies unexpectedly dropped by 4.7 million barrels last week. Analysts expected supplies to grow, according to a survey by Platts, the energy-information arm of McGraw Hill Cos.

The drop in supplies doesn't mean the U.S. is using more crude. The Energy Information Administration report noted that refineries imported less oil, gasoline and other fuels as demand fell last week.

The nation's gasoline supplies also fell, by 3.3 million barrels last week. That was more than analysts expected. The drop comes as Sunoco and ConocoPhillips wind down refineries in Pennsylvania and other refineries slow down for seasonal maintenance.

At the pump, gasoline prices rose 1.5 cents on Wednesday to a national average of $3.474 per gallon, according to AAA, Wright Express and Oil Price Information Service. Gasoline prices have increased almost every day for nearly two weeks, rising to record levels for this time of year.

In other energy trading, heating oil was down about a cent at $3.0208 per gallon. Gasoline futures fell 4 cents to $2.7096 per gallon. Natural gas rose 2 cents to $3.574 per 1,000 cubic feet.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2011-10-19-Oil%20Prices/id-5fc4ccf615f742d88ab25a5f58b5fb22

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