Oil prices fell Wednesday after the U.S. government reported that petroleum inventories grew more than expected, with crude supplies rising to the highest level in almost 19 years. Light sweet crude oil for June delivery fell slightly to near $48 a barrel in midday trading on the New York Mercantile Exchange. The U.S. Energy Department said oil inventories are at their highest since September 1990. Crude supplies rose by 3.9 million barrels, or 1.1 percent, to 370.6 million barrels last week, the department's Energy Information Administration (EIA) reported. Analysts had expected an increase of 3 million barrels. Gasoline supplies rose 800,000 barrels, or 0.4 percent, to 217.3 million barrels last week, which is 1 percent above year-ago levels, the EIA said. Analysts had expected an 860,000-barrel decline. Oil inventories have been growing for months, and traders are less surprised now by record surplus figures than they were a few months ago. Recently, crude prices have followed stock prices as investors look for other signs of economic recovery.
