Crude-oil futures dropped further on Thursday after a weekly supply report showed a larger-than-expected increase in crude inventories, and U.S. stockpiles were at the highest in eight decades.
The U.S. Energy Information Administration said crude inventories rose by 10.1 million barrels on the week ended Jan. 16. Analysts polled by Platts had expected an increase of 2.5 million barrels for the week.
Moreover, at 387.9 million barrels, U.S. crude oil inventories "are at the highest level for this time of the year in at least the last 80 years," the EIA said in the report.
Gasoline stockpiles increased by 600,000 barrels, while distillates inventories declined by 3.3 million, the EIA said. The analysts surveyed by Platts had expected gasoline stocks up 1.05 million barrels and distillate stocks, which include heating oil, up 167,000 barrels.
Crude for March delivery was off $1.57, or 3.4%, at $46.11 U.S. It had traded at $47.14 U.S. moments before the EIA report was released.
