Crude prices fall as US inventories jump

Crude oil prices fell Wednesday on a new inventories report from the US Energy Information Administration and after the International Energy Agency cut their projection for oil demand this year.

In its weekly US inventories report, the EIA said that 4.3 million barrels of crude oil were added to stockpiles in the week ending 11 January, while thee were 2.2 million more barrels of gasoline in stock and distillates gained 1.1 million barrels in storage.

All, however, remain below inventory levels last year at the same time.

Meanwhile, the IEA said that global oil demand will rise to 87.8 million barrels per day this year, or by 2.3 percent, and added that it could revise its projections again if the US economy worsens.

Last month, the international agency said that demand would go up 2.5 percent this year.

February contracts for West Texas Intermediate crude dropped 85 cents to $91.05 per barrel just before the close of floor trade on the New York Mercantile Exchange while Brent crude for February delivery was down $1.72 to $89.26 per barrel on the ICE Futures Europe exchange in London.

Nymex February gasoline was 5 cents lower to $2.26 per gallon while March heating oil fell 1 cent to $2.52 per gallon.

March natural gas dropped 7 cents to $8.06 per million British thermal units.