NEW YORK - Oil prices are falling after the government reported a smaller-than-expected drop in U.S. gasoline supplies.
The Energy Information Administration said Thursday that U.S. gasoline stocks fell by 1 million barrels to 194.4 million barrels for the week ending Aug. 29, less than the 1.8 million-barrel drop analysts surveyed by energy research firm had Platts expected. The EIA also said U.S. crude supplies fell unexpectedly last week.
The market appeared to be interpreting the gas inventory figure as more evidence of weakening demand.
Light, sweet crude for October delivery is down $2.70 at $105.65 a barrel in morning trading on the New York Mercantile Exchange.