Oil prices closed at their lowest level in five months Thursday after a smaller-than-expected decline in U.S. gasoline inventories gave traders more reason to believe that a slowing economy is forcing Americans to drive less. Light sweet crude oil for October delivery fell $1.46 to $107.89 a barrel on the New York Mercantile Exchange. It was the oil future's fifth consecutive decline and the lowest closing price since April 4. In its weekly petroleum-inventory report, the Energy Information Administration (EIA) said U.S. gasoline supplies fell by 1 million barrels to 194.4 million barrels last week. Analysts had expected a drop of 1.8 million barrels. The EIA reported that crude inventories fell unexpectedly last week, dropping by 1.9 million barrels to 303.9 million barrels. The decline was nearly four times bigger than analysts had expected. Supplies of distillates—including diesel, heating oil, and jet fuel—fell by 400,000 barrels to 131.7 million barrels. Analysts had expected supplies to rise by 1.1 million barrels. Crude prices have fallen about $38, or 26 percent, since spiking at a record high above $147 a barrel on July 11, as a U.S. economic slowdown spreads overseas and reduces global demand for petroleum products.
