Price dips below $88 a barrel as inventory report shows strength in gasoline and distillates as well.
NEW YORK (CNNMoney.com) -- Oil prices fell Wednesday after the government said supplies of crude rose more than expected last week.
U.S. light crude for March delivery tumbled $1.15 to $87.26. Oil had traded up 10 cents to $88.51 just prior to the report's release.
In its weekly inventory report, the Energy Information Administration said crude stocks rose by 7 million barrels last week. Analysts were looking for a rise of 2.6 million barrels, according to a Dow Jones poll.
Distillates, used to make heating oil and diesel fuel, rose by 100,000 barrels while gasoline supplies rose by 3.6 million barrels. Analysts were looking for a 1.8 million barrel dip in distillates supplies and a 1.8 million rise in gasoline stockpiles.