Oil down after surprise jump in US crude stocks

NEW YORK: Oil prices are falling after the government reported a surprise increase in U.S. crude inventories and a bigger-than-expected jump in gasoline stocks. Investors viewed the data as more evidence that a souring U.S. economy continues to crimp demand for fuel.

The Energy Information Administration said Wednesday that crude stocks rose by 8.1 million barrels to 302.6 million barrels last week. Analysts surveyed by energy research firm Platts had expected crude stocks to fall by 1 million barrels.

The EIA also said gasoline stocks soared by 7.2 million barrels to 186.8 million barrels, well above the 2 million barrel increase analysts had expected. Light, sweet crude for November delivery was down $2.97 at $87.09 a barrel on the New York Mercantile Exchange.